The House approved a revised $700 billion financial rescue package, ending a weeklong battle over a controversial measure after lawmakers came under pressure to head off a growing financial crisis.
The plan, which was already approved by the Senate, would allow the government to spend billions of dollars to buy bad mortgage-related securities and other devalued assets from troubled financial institutions.
US stocks, which had rallied earlier on hopes of approval, began paring their gains after the measure was passed.
What's in the Revised Measure
Why There's a Tax Break for Arrows
If it works, advocates say, that would allow frozen credit to begin flowing again and prevent a serious recession.
After the House rejected the initial measure on Monday, the Senate revised the bill, adding billions of dollars ot tax breaks to sweeten the package, and approved it Wednesday night.
In efforts to appease GOP opponents, the revised measure includes raising the limit on federal insurance for bank deposits from $100,000 to $250,000.
The bill also extends several tax breaks popular with businesses, provisions that are favorites for most Republicans.
It would keep the alternative minimum tax from hitting 20 million middle-income Americans, which appeals to lawmakers in both parties.
Friday, October 3, 2008
Ratan Tata drives Nano car out of West Bengal
KOLKATA: In a stinging blow to investment prospects in West Bengal, Tatas today pulled the Rs 1-lakh Nano car project out of the state with Ratan Tata squarely blaming Trinamool Congress chief Mamata Banerjee-led farmers' agitation for the "painful decision"."I am extremely pained. It has been an extremely painful decision. It has been a great disappointment for the people working on the ground, more than me," Tata announced the much-anticipated decision after meeting the state Chief Minister Buddhadeb Bhattacharjee.Addressing a crowded press conference, Tata announced the pull-out of the two-year long troubled project and said the company was looking at alternate sites in some states for rolling out Nano car by the promised deadline of December this year.Gujarat, Karnataka, Maharashtra and Uttarakhand have invited Tatas to set up the project in their states.Tata felt the Buddhadeb government was not to be blamed for the unfortunate decision and promised to continue investing in the state in new projects.Tata added that West Bengal is a terrific state in terms of people. "In that context, whether we bought the land or whatever we did, we did it in good faith. We wanted to make a difference. I had a desire that this part of the country, which has been ignored, should be part of development, and I wanted to be part of it. The state still has the potential. I would have to say he (Buddadeb Bhattacharya) was exceedingly distressed... he persuaded us that we should not move but we told them that the safety of our employees could not be passed on to the government. You can't run a plant when people are being intimidated. This is only during construction... what happens when the plant starts functioning? The CM thought we made the wrong decision but we parted as friends."Pinning the blame on Banerjee, Tata said "agitation by the opposition party has been the sole reason for this decision... How can we go into production when people are saying we will continue agitation.""We have not been a party to any land dispute. It is between West Bengal government and Trinamool Congress," he added.
Ratan Tata said the project got caught in the political crossfire... "I am not pulling out, it is because of Mamata Banerjee. We waited for two years... it was prime time. We can't wait anymore. Opportunity for young people is large. Today, this project has gone but there are hundereds of such projects that would come. Bengal needs to have development. It needs to have infrastructure, it needs investments but what will be the future of WB unless there is development, and that one needs to ponder...."Asked about the fate of vendors of the project, he said, "I think vendors will also move with us. They are an integral part of the project. We will try to protect the interest of the vendors."He added that its a decision that shatters many dreams... "I share the disappointment with people who have worked on this project... but also have a feeling that it is good that we are moving. We all have lessons to learn..."
The Rs 1,500-crore project was announced in May 2006 for which the work started in January 2007. It ran into rough weather with the Trinamool Congress strongly opposing the land acquisition by the state for the project."To the best of my knowledge, the land was acquired legally... it was done transparently and the compensation was based fairly," he said.Efforts by the West Bengal Chief Minister and Governor Gopalkrishna Gandhi to salvage the project turned futile with Banerjee unwilling to relent on her demand of returning 300 acres of acquired land to farmers.Tata said the move has been prompted after taking into account issues such as well-being of its employees at the project and safety of contractors as well as that of its vendors.On the future association of Tatas with the state, he said the group already has considerable presence here and it has not lost enthusiasm in future investment."I hope West Bengal prosper in the future. In the future we will be here again. We don't believe that we have lost our enthusiasm in investing in West Bengal and assure that we will invest in the state for new projects," he said.Tata said the pull-out decision would have no bearing on group's future investments in the state.The Tatas' pull-out from Singur for its prestigious Nano car project could not have come at a "worse time", as India was preparing to face the fall-out of the global financial crisis on the emerging economies, Commerce Secretary G K Pillai said today."It is an unfortunate development. It could not have come at a worse time," Pillai said, adding the country was faced with a challenge of coping with the financial turmoil in the world markets.The Commerce Secretary said as a direct consequence, investment in West Bengal would drop by 30%.However, he said, the Tatas' pull-out of the state should be seen as an isolated case.Pillai expressed the hope that the Standing Committee of Parliament would soon finalise its recommendations on the new Land Acquisition Bill and the Rehabilitation and Resettlement Bill.
Ratan Tata said the project got caught in the political crossfire... "I am not pulling out, it is because of Mamata Banerjee. We waited for two years... it was prime time. We can't wait anymore. Opportunity for young people is large. Today, this project has gone but there are hundereds of such projects that would come. Bengal needs to have development. It needs to have infrastructure, it needs investments but what will be the future of WB unless there is development, and that one needs to ponder...."Asked about the fate of vendors of the project, he said, "I think vendors will also move with us. They are an integral part of the project. We will try to protect the interest of the vendors."He added that its a decision that shatters many dreams... "I share the disappointment with people who have worked on this project... but also have a feeling that it is good that we are moving. We all have lessons to learn..."
The Rs 1,500-crore project was announced in May 2006 for which the work started in January 2007. It ran into rough weather with the Trinamool Congress strongly opposing the land acquisition by the state for the project."To the best of my knowledge, the land was acquired legally... it was done transparently and the compensation was based fairly," he said.Efforts by the West Bengal Chief Minister and Governor Gopalkrishna Gandhi to salvage the project turned futile with Banerjee unwilling to relent on her demand of returning 300 acres of acquired land to farmers.Tata said the move has been prompted after taking into account issues such as well-being of its employees at the project and safety of contractors as well as that of its vendors.On the future association of Tatas with the state, he said the group already has considerable presence here and it has not lost enthusiasm in future investment."I hope West Bengal prosper in the future. In the future we will be here again. We don't believe that we have lost our enthusiasm in investing in West Bengal and assure that we will invest in the state for new projects," he said.Tata said the pull-out decision would have no bearing on group's future investments in the state.The Tatas' pull-out from Singur for its prestigious Nano car project could not have come at a "worse time", as India was preparing to face the fall-out of the global financial crisis on the emerging economies, Commerce Secretary G K Pillai said today."It is an unfortunate development. It could not have come at a worse time," Pillai said, adding the country was faced with a challenge of coping with the financial turmoil in the world markets.The Commerce Secretary said as a direct consequence, investment in West Bengal would drop by 30%.However, he said, the Tatas' pull-out of the state should be seen as an isolated case.Pillai expressed the hope that the Standing Committee of Parliament would soon finalise its recommendations on the new Land Acquisition Bill and the Rehabilitation and Resettlement Bill.
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