The government on Thursday made the largest bank seizure in American history, taking over Washington Mutual and selling pieces of it to JPMorgan Chase.
AP - A Republican rebellion stalled government efforts Thursday to avoid economic meltdown, a chaotic turnaround that disrupted the choreography of an extraordinary White House meeting meant to show joint resolve from the president, the political parties and the presidential candidates. Instead, the summit broke up so bitterly that Treasury Secretary Henry Paulson got on one knee before Democratic leaders in a theatrical attempt to salvage talks.
AP - As the debate over a $700 billion bank bailout rages on in Washington, one of the nation's largest banks — Washington Mutual Inc. — has collapsed under the weight of its enormous bad bets on the mortgage market.
AP - GOP vice presidential nominee Sarah Palin said late Thursday she would donate to charity more than $1,000 in campaign contributions from two Alaska politicians who were implicated in a sprawling public corruption scandal. She's also handing back another $1,000 from the wife of one of the men.
Negotiations over the proposed financial bailout unraveled Thursday as lawmakers bickered over competing counterproposals to the Bush administration's $700 billion rescue plan. A White House meeting was meant to speed approval of an agreement but instead revealed deep divisions between Democrats and Republicans, CNNMoney reports.
Americans should not stop paying their mortgages even if their mortgage companies are threatened because "your home and your mortgage are not affected by the fact that your mortgage company may go out of business," CNN senior business correspondent Ali Velshi says.