Sector soars on talk that 'bad bank' notion will take flight

Date: Wed, 28 Jan 2009 12:01:18 -0500

Sector soars on talk that 'bad bank' notion will take flight

Shares of U.S. banks surge on reports that the Obama administration
may adopt a plan to buy bad assets in the financial system and create
a so-called bad bank to hold them.

BAD BANK COULD BE RUN BY FDIC CHAIRWOMAN BAIR

The Obama administration considers setting up a so-called bad bank to
buy illiquid mortgages from troubled financial institutions as its
latest effort to restore confidence in the financial markets.

WELLS FARGO SWINGS TO $2.6 BILLION LOSS ON CREDIT WRITE-DOWNS

Wells Fargo & Co. on Wednesday reports a quarterly loss of about $2.6
billion as the banking giant is hit by credit write-downs and losses
at Wachovia, which it recently acquired.

BOEING SWINGS TO FOURTH-QUARTER LOSS ON MACHINIST STRIKE

Boeing has a fourth-quarter loss due mainly to the machinist strike
that ended last fall, aerospace giant's financial results show.

THE FED: FED THROWS KITCHEN SINK AT RECESSION, ECONOMISTS SAY

As it meets to discuss policy action, the Federal Reserve is trying to
convince the market that it is tough enough to combat this recession,
economists say.