White House tries to end bank nationalization talk

WASHINGTON – The White House on Friday insisted it's not trying to take over two ailing financial institutions, even as stocks tumbled again. On Wall Street, talk of nationalization of Citigroup Inc., and Bank of America Corp., prompted investors to continue to balk, worried that the government would have to take control and wipe out shareholders in the process.

Citigroup fell 20 percent, while Bank of America fell 12 percent in afternoon trading but also came off their lowest levels.

"This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring that they are regulated sufficiently by this government," White House press secretary Robert Gibbs said when asked about nationalizing the banks.

"That's been our belief for quite some time, and we continue to have that," Gibbs said.

Investors have shown decreasing confidence that U.S. banks can right themselves. Citigroup and Bank of America have already received significant help from taxpayers as the government has rushed in to try to save the financial sector, which has been choked by bad assets and seen the flow of credit shrink.

The speculation about the two banks' future continued to take a direct toll on the market.

Gibbs was pressed for more details on his answer — specifically whether Obama would not nationalize banks. He said it was hard for him to be any clearer.

When a reporter suggested Gibbs could do that by saying point bank that Obama would never nationalize banks, Gibbs would not make that statement, but emphasized: "I think I was very clear about the system that this country has and will continue to have."

source : news.yahoo.com

Pakistan to seek 4.5 billion dollars from IMF

KARACHI: Pakistan is to ask for an additional loan of 4.5 billion dollars from the International Monetary Fund to patch up an economy wilting under a widening trade deficit, an official said Tuesday.

The request will be on top of a 7.6 billion dollar advance already agreed with the IMF, and comes as Pakistani officials meet creditors to review how the cash is being spent. At the talks in Dubai, which are due to last until February 26, Pakistani and IMF officials will assess financial targets set for the country to qualify for the second installment of the loan, a finance ministry official said.

“During that meeting, Pakistan will ask for an additional loan of 4.5 billion dollars,” the official told on condition of anonymity as he was not authorized by the government to release the information. It was not immediately clear whether the IMF would grant the request.

Pakistan got 3.1 billion dollars in the first tranche of a 23-month standby IMF loan last November, with subsequent payments dependent on Islamabad’s fulfilling targets set by the international fund. Among other tight demands, the IMF wants a reduction in Pakistan’s deficit and huge borrowing from the central State Bank. The country approached the IMF last year for a rescue package as it grappled with a 30-year high inflation rate and fast-depleting reserves that held barely enough to cover nine weeks of import bills.

source : jang.com.pk

Japan finance minister steps down

TOKYO: Finance Minister Shoichi Nakagawa has said he will resign for health reasons, amid claims that he was drunk at a recent G7 meeting.

Mr. Nakagawa said he would resign after the lower house of parliament passed the government’s budget. He earlier apologised for his behaviour at last weekend’s news conference in Rome but blamed cold remedies for a slurred performance there. He said he had not drunk more than a sip of alcohol before facing the media.

Mr Nakagawa’s resignation is seen as a major blow to Prime Minister Taro Aso’s government in an election year.

source : jang.com.pk

Tsvangirai sworn in Zimbabwe PM

HARARE: Zimbabwe's opposition leader Morgan Tsvangirai has been sworn in as prime minister in a unity government with President Robert Mugabe.

Flour price increased in Balochistan

QUETTA: Flour price has been increased in Balochistan and the price of 20 kg bag of flour has gone up to Rs50.

Flour bag of 20 kg is being sold at Rs650 to Rs700 in various districts of Balochistan including Quetta for the last two days whereas the same flour is available at fair-price shops at Rs530.

Flour dealers said that the government has abolished quota for bringing flour from Punjab due to which they are not getting flour from Punjab.

Owners of flour mills in Quetta have refused to lift flour from government godowns saying that wheat imported from Ukraine is sub-standard.

Meanwhile, Director Food Balochistan said that reserves of wheat for two months is available in government godowns and there is no scarcity of flour in the province.

He said that an action would immediately be taken against those increasing the prices of flour in the province.