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Questions Rise About Bailout Plan
(2008-09-23)
Pedestrians walk past a window of an American International Group building in New York's financial district
(Associated Press) -

Leading senators of both parties are expressing strong reservations about the administration's financial bailout plan despite pleas from the treasury secretary and Federal Reserve chairman for quick passage.

Senator Chris Dodd, a Connecticut Democrat, said, "What they have sent us is not acceptable." Senator Richard Shelby, an Alabama Republican, said, "We have got to look at some alternatives."

Earlier, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson both warned Congress that if it fails to pass a 700-billion-dollar bailout of the financial markets, there is a real risk that the country will tumble into recession.

Dodd says he and other lawmakers understand the need for speedy passage of the measure, but they also want to make sure "we get this right."

Stock prices ended lower, capping a volatile session that saw stocks moving higher earlier.

The discussion in Washington regarding a 700-billion-dollar financial rescue plan continues to be a key issue for investors.

The Dow fell 161 points to 10,854.

The S&P dropped nearly 19 points to 1,188.

And the Nasdaq composite shed 25 points to 2,153.

Declining issues outnumbered advancers by a more than 2 to 1 margin.

Volume on the NYSE came to 5 billion shares. Nasdaq stock market volume was nearly 2 billion shares.

Near-month crude settled in New York at $106.61, down $2.76 a barrel.
© Copyright 2009, Associated Press


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