US working hard to check Wall St impact on economy: BushSeptember 16th, 2008 - 1:20 am ICT by IANS
Washington, Sep 15 (IANS) As the US financial system reeled with the turmoil on the Wall Street, President George W. Bush assured that his administration was working to reduce disruptions and minimise the impact on the broader economy.”As policymakers, we’re focused on the health of the financial system as a whole,” Bush said at the White House Monday, using the visit of Ghana President John Kufuor to reach out to the Americans “concerned about the adjustments that are taking place in our financial markets”.
Expressing confidence that US capital markets have the flexibility and resiliency to deal with the crisis in the long run, he said: “In the short run, adjustments in the financial markets can be painful — both for the people concerned about their investments, and for the employees of the affected firms.”
“In the long run, I’m confident that our capital markets are flexible and resilient, and can deal with these adjustments,” Bush said.
The White House and his administration were focused on the crisis and were “working to reduce disruptions and minimise the impact of these financial market developments on the broader economy,” he said.
He also appreciated the work the Treasury Department, and the Federal Reserve, and the Securities and Exchange Commission, and major financial institutions in the US and around the world are doing to promote stability in the financial systems.
Bush’s remarks came as two of the world’s biggest banks tumbled with Lehman Brothers Holdings Inc. filing for bankruptcy protection under Chapter 11 of the US Bankruptcy Code early Monday morning and Merrill Lynch & Co agreeing to be sold to Bank of America Corp, the country’s largest consumer bank, in a $50 billion deal.
Stocks on Wall Street plummetted just after the opening bell Monday morning with the Dow Jones industrial average dropped more than 300 points in just under 10 minutes of trading.
The Dow had recovered slightly after 10 a.m., with the blue-chip index down about 250 points, or 2.2 percent. Shares of financial stocks fell, but have not neared their lows for the year, set in July.
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