by bobswern, Thu Sep 25, 2008 at 07:18:39 PM EDT
Two stories breaking in the past 90 minutes...
Additionally, the Federal Office of Thrift Supervision has formally seized the operations of the nation's largest savings & loan, Washington Mutual (WaMu), after a deal was struck between WaMu and JPMorgan Chase for the latter to acquire WaMu's depositor accounts.
Essentially, this means that the Federal Deposit Insurance Corporation (FDIC), the entity that insures depositor accounts, will be required to obtain a significant, new round of capital to cover what's anticipated to be an ongoing stream of scores of bank failures in coming weeks and months. (117 banks are now on the FDIC's highly-confidential [they don't want the public to panic and withdraw funds from these institutions, so they guard the list's contents] "watch list," as I write this.)
Meanwhile, back to the story that shows that when it comes to the well-being of the voting public, the GOP never fails to amaze us when they demonstrate how low McCain's willing to go to try and change the campaign narrative.
Negotiations over a $700 billion Wall Street bailout plan broke down Thursday amid a round of partisan finger-pointing, with top Democrats alleging that Sen. John McCain and House GOP leaders may have purposely derailed the talks in order to score political points.
According to one GOP lawmaker, some House Republicans are saying privately that they'd rather "let the markets crash" than sign on to a massive bailout.
"For the sake of the altar of the free market system, do you accept a Great Depression?" the member asked.
"There is an agreement between Sen. Dodd and Chairman Frank," said Michael Steel, spokesman for House Minority Leader John Boehner (R-Ohio).
Steel reiterated that Rep. Spencer Bachus (R-Ala.) -- who, as ranking member of the House Financial Service Committee participated in talks on the compromise -- "wasn't empowered to negotiate" any agreement on behalf of other House Republicans.
The Politico story also went on to mention that Treasury Secretary Paulson rushed back to the Hill late tonight to attempt to reconcile the increasingly apparent fracture within the Republican Party leadership there.