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Once the bill is signed into law, Paulson will have many options open to him on how to unclog the credit markets, which Senator Judd Gregg, the top negotiator on the bill for Senate Republicans, described as a massive car accident in the middle of the highway. The government must...

Author: /time Magazine | Title: The Bailout Bill That Nobody Likes | 9/29/2008 | See Source »

After their McCain-backed White House rebellion last week, House Republicans won a few concessions in the compromise: they had funding for a controversial housing program taken out and a bankruptcy provision that they argued was a giveaway to trial lawyers removed. They also got the Treasury Department to establish...

Author: /time Magazine | Title: The Bailout Bill That Nobody Likes | 9/29/2008 | See Source »

Fortis isn't alone among the banks in that once lauded consortium to fall on hard times; mighty RBS has since written off billions of dollars in sub-prime related losses, and even turned desperately to shareholders in June for some $20 billion in fresh capital. But if both lenders...

Author: /time Magazine | Title: Lessons from Europe's Big Bailout | 9/29/2008 | See Source »

In an age of billion dollar losses and complex financial assets, Santander's fortunes speak to the advantages of a simpler approach. Spain's largest bank "lends to their clients, takes deposits from their clients, and runs a network of branches," says Antonio Ramirez, analyst at investment bank Keefe, Bruyette...

Author: /time Magazine | Title: Lessons from Europe's Big Bailout | 9/29/2008 | See Source »

And here too, Spain's regulators have encouraged sensible behavior. For years, banks have been required to put aside cash to cover expected future losses, not actual ones. The Bank of Spain "thought that in the good times it makes sense to build a cushion for the bad times," says...

Author: /time Magazine | Title: Lessons from Europe's Big Bailout | 9/29/2008 | See Source »

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