Congress President Sonia Gandhi and Bollywood superstar Shahrukh Khan have been ranked among the 50 most powerful people in the world by the prestigious US-based magazine 'Newsweek' magazine in a list topped by President- elect Barack Obama.
Pakistan army chief Ashfaq Parvez Kayani, who controls the the country's nuclear weapons, is placed 20th on the list of the global "power elite" at the beginning of 2009 in the magazine's January issue.
Obama, who scripted history by becoming the first black-American to be voted to the White House, is followed by Chinese President Hu Jintao, French President Nicolas Sarkozy, British Prime Minister Gordon Brown, German Chancellor Angela Markel and powerful Russian Prime Minister Vladimir Putin.
A surprise inclusion in the list, which the magazine admits is subjective, is Osama bin Laden, whom the Newsweek describes as "global terrorist." North Korean dictator Jim Jong II also finds a place in the list.
Placing Sonia Gandhi at 17th spot, the magazine says though Indian political scene is riven by factions, Congress remains the strongest national force and rules unchallenged. "In the world's largest democracy, she is the queen."
The magazine describes Shahrukh Khan, who occupies 41st spot, as the 'King of Bollywood'.
"It's not just that his (Shahrukh Khan's) romantic flicks make gazillions it's where those gazillions come from. Khan is huge in the Muslim world, even in Pakistan and Afghanistan, where the mullahs ban his films. (The movies thrive on the black market.)
"Their main appeal is certainly the song-and-dance numbers, but Khan (a Muslim married to a Hindu) makes devoutly secular films where love trounces bigotry," the magazine says, adding that Sonia Gandhi gives Khan's DVDs to visitors, especially Muslim ones. "Here's hoping tolerance will leap from reel life to real life."
On Kayani, it says, that in theory this mumbling chain-smoking Pakistan army chief answers to President Asif Ali Zardari. But Kayani and his troops remain the dominant power in what could be the most dangerous country in the world, it adds.
"He's responsible for Pakistan's nukes; for the battle against al-Qaeda and its tribal allies along the Afghan border; and for managing tensions with neighbour India," the magazine stresses, noting that so far, his army has kept itself out of politics and seems focused on the battle against 'jihadists'.
"In the wake of the November terrorist attacks in Mumbai, Kayani stood firm on Pakistan's sovereignty while also taking measures against the alleged sponsors of the outrage," it says.
About 47-year-old Obama, it says the presidency of the "intensely charismatic" Democrat, who will be inaugurated on January 20, will be judged on how he handles the economic crisis that now envelops the US and the world. "For Obama to be remembered as a great President, he has to do nothing less than rescue capitalism."
For bin Laden, who finds 42nd spot, the magazine says the manhunt may not have been successful, but it has driven him far underground. Once a glutton for publicity, he has not shot a new video since September 2007, and no audio message from him has been heard since May 2008, it says.
Source: Agencies
Sunday, December 21, 2008
Saturday, December 20, 2008
Walk-in jobs at TCS for doctorates in computer sciences
At a time when job offer letters to campus recruits are few and far between, India's software giant Tata Consultancy Services Limited (TCS) has declared that it will recruit all doctorates in computer science without any interview.
Speaking to reporters on the sidelines of the PanIIT 2008, a conference of the Indian Institute of Technology alumni here Saturday, TCS CEO and managing director S. Ramadorai declared: "We will hire Ph.D. degree holders in computer science over the next five years."
He said the move was expected to enthuse more students to pursue doctoral studies in the subject.
Source: Agencies
Speaking to reporters on the sidelines of the PanIIT 2008, a conference of the Indian Institute of Technology alumni here Saturday, TCS CEO and managing director S. Ramadorai declared: "We will hire Ph.D. degree holders in computer science over the next five years."
He said the move was expected to enthuse more students to pursue doctoral studies in the subject.
Source: Agencies
Internet's underground economy is worth $5 billion
Internet fraud has become a multi-billion dollar business with thieves stealing bank account information and credit card numbers and then selling them online.
Hi-tech thieves who specialize in card fraud have a credit line in excess of $5bn, research by the world’s largest maker of security software, Symantec, suggests .
Symantec calculated the figure to quantify the scale of fraud it found during a year-long look at the internet’s underground economy , according to reports.
Credit card numbers were the most popular item on sale and made up 31% of all the goods on offer. Coming in second were bank details which made up 20% of the items being offered on criminal chat channels. The $5.3bn figure was reached by multiplying the average amount of fraud perpetrated on a stolen card, $350, by the many millions Symantec observed being offered for sale. Similarly, the report said, if hi-tech thieves plundered all the bank accounts offered for sale they could net up to $1.7bn.
Symantec said it was likely that many of the cards offered for sale were invalid or cancelled and bank accounts closed but it added: “These figures are indicative of the value of the underground economy and the potential worth of the market.”
Credit card numbers have proved so popular among hi-tech thieves because they are easy to obtain and use for fraudulent purposes. Many of the methods favoured by cyber criminals, such as phishing schemes, database attacks and magnetic strip skimmers, are designed to steal credit card information , it said.
The existence of a ready market for any stolen data and the growing use of credit cards also helped maintain their popularity, it said.
“High frequency use and the range of available methods for capturing credit card data would generate more opportunities for theft and compromise and, thus, lead to an increased supply on underground economy servers,” said the report.
The price card thieves can expect for the numbers they offer for sale also varied by the country of origin. US card numbers were the cheapest because they were so ubiquitous — 74% of all cards offered for sale were from the US. By contrast numbers from cards issued in Europe and the Middle East commanded a premium because they were relatively rare.
Source: Agencies
Hi-tech thieves who specialize in card fraud have a credit line in excess of $5bn, research by the world’s largest maker of security software, Symantec, suggests .
Symantec calculated the figure to quantify the scale of fraud it found during a year-long look at the internet’s underground economy , according to reports.
Credit card numbers were the most popular item on sale and made up 31% of all the goods on offer. Coming in second were bank details which made up 20% of the items being offered on criminal chat channels. The $5.3bn figure was reached by multiplying the average amount of fraud perpetrated on a stolen card, $350, by the many millions Symantec observed being offered for sale. Similarly, the report said, if hi-tech thieves plundered all the bank accounts offered for sale they could net up to $1.7bn.
Symantec said it was likely that many of the cards offered for sale were invalid or cancelled and bank accounts closed but it added: “These figures are indicative of the value of the underground economy and the potential worth of the market.”
Credit card numbers have proved so popular among hi-tech thieves because they are easy to obtain and use for fraudulent purposes. Many of the methods favoured by cyber criminals, such as phishing schemes, database attacks and magnetic strip skimmers, are designed to steal credit card information , it said.
The existence of a ready market for any stolen data and the growing use of credit cards also helped maintain their popularity, it said.
“High frequency use and the range of available methods for capturing credit card data would generate more opportunities for theft and compromise and, thus, lead to an increased supply on underground economy servers,” said the report.
The price card thieves can expect for the numbers they offer for sale also varied by the country of origin. US card numbers were the cheapest because they were so ubiquitous — 74% of all cards offered for sale were from the US. By contrast numbers from cards issued in Europe and the Middle East commanded a premium because they were relatively rare.
Source: Agencies
Net blackout in Mideast and South Asia
Breaks in three submarine cables which link Europe and the Middle East have disrupted Internet and international telephone services in parts of the Middle East and South Asia.
The disruption reduced Egypt's Internet capacity by about 80 percent. Technicians were restoring some capacity by diverting communications traffic through the Red Sea, said a Communications Ministry official, who asked not to be named.
Residents said Internet service was either non-existent or very slow. The gravity of the outage, caused by breaks in cables in the Mediterranean off Italy, varied from area to area and according to the service provider.
In Pakistan, Internet service provider Micronet Broadband said its customers were facing degraded Internet services because of "issues" on the SMW-3, SMW-4 and FLAG lines.
In January, breaks in undersea cables off the Egyptian coast disrupted Internet access in Egypt, the Gulf region and south Asia, forcing service providers to reroute traffic and disrupting some businesses and financial dealings.
Several Egyptian residents said late on Friday that it was impossible to call the United States but calls to Europe appeared to be going through.
In Pakistan, Micronet engineer Wajahat Basharat said on Saturday Internet traffic was congested and slow and some of it was being diverted to other routes.
"Significant outage”
The International Cable Protection Committee, an association of submarine cable operators, said it was "aware of multiple submarine cable failures in the Eastern Mediterranean area that may be affecting the speed of Internet communications on some routes."
It said in a statement on its website it did not know what had caused the problem.
Stephan Beckert, an analyst with the U.S.-based telecommunications market research firm TeleGeography, said the three affected cables were the most direct route for moving traffic between Western Europe and the Middle East.
"If those three cables were cut and are completely out, it would be a fairly significant outage," he said.
"It is going to cause problems for some customers. It's certainly going to slow things down," Beckert said, adding that he did not believe financial institutions would be hit hard.
"Generally speaking we find that they are extremely painstaking about making sure that they have redundant capacity," he said.
Officials with AT&T Inc and Verizon Communications, the two largest U.S.-based carriers, said that some customers in the Middle East had lost all service, while others were experiencing partial disruptions on Internet connections.
Verizon had rerouted some of its traffic by sending it across the Atlantic, then the United States, across the Pacific, and on to the Middle East.
A New York Stock Exchange spokesman said he was unaware of any disruptions in trading. Exchanges CME Group, and IntercontinentalExchange said they had no disruption in their trading on Friday.
Source: Agencies
The disruption reduced Egypt's Internet capacity by about 80 percent. Technicians were restoring some capacity by diverting communications traffic through the Red Sea, said a Communications Ministry official, who asked not to be named.
Residents said Internet service was either non-existent or very slow. The gravity of the outage, caused by breaks in cables in the Mediterranean off Italy, varied from area to area and according to the service provider.
In Pakistan, Internet service provider Micronet Broadband said its customers were facing degraded Internet services because of "issues" on the SMW-3, SMW-4 and FLAG lines.
In January, breaks in undersea cables off the Egyptian coast disrupted Internet access in Egypt, the Gulf region and south Asia, forcing service providers to reroute traffic and disrupting some businesses and financial dealings.
Several Egyptian residents said late on Friday that it was impossible to call the United States but calls to Europe appeared to be going through.
In Pakistan, Micronet engineer Wajahat Basharat said on Saturday Internet traffic was congested and slow and some of it was being diverted to other routes.
"Significant outage”
The International Cable Protection Committee, an association of submarine cable operators, said it was "aware of multiple submarine cable failures in the Eastern Mediterranean area that may be affecting the speed of Internet communications on some routes."
It said in a statement on its website it did not know what had caused the problem.
Stephan Beckert, an analyst with the U.S.-based telecommunications market research firm TeleGeography, said the three affected cables were the most direct route for moving traffic between Western Europe and the Middle East.
"If those three cables were cut and are completely out, it would be a fairly significant outage," he said.
"It is going to cause problems for some customers. It's certainly going to slow things down," Beckert said, adding that he did not believe financial institutions would be hit hard.
"Generally speaking we find that they are extremely painstaking about making sure that they have redundant capacity," he said.
Officials with AT&T Inc and Verizon Communications, the two largest U.S.-based carriers, said that some customers in the Middle East had lost all service, while others were experiencing partial disruptions on Internet connections.
Verizon had rerouted some of its traffic by sending it across the Atlantic, then the United States, across the Pacific, and on to the Middle East.
A New York Stock Exchange spokesman said he was unaware of any disruptions in trading. Exchanges CME Group, and IntercontinentalExchange said they had no disruption in their trading on Friday.
Source: Agencies
Mobile phone sales set to slide in 2009!
An IDC report Says the impact of economic crisis on mobile phone market may not continue past 2009.
Technology research firm IDC said in a report that the global mobile phone sales are set to slide for the first time since 2001 as a result of the global economic crisis.
The report forecasts that total mobile phone volumes would be 1.9 per cent lower in 2009 than the 2008 levels, said a press release.
In 2001, the shipments had declined 2.3 per cent. Over the past several years, the mobile phone market has enjoyed double-digit annual growth due to an increased emphasis on emerging markets.
However, emerging market growth has been steadily slowing as these markets mature, the release said. IDC now expects worldwide growth to be just 7.1 per cent in 2008 before slipping into negative growth in 2009.
A number of major industry players, including component suppliers, handset makers, and operators have announced their concerns about handset volumes in 2009.
Most have indicated that they expect a year-over-year decrease due to the flagging global economy, the release added.
The report stated that it did not expect the downturn to continue past 2009, with the market in 2010 showing signs of revival as the economic recovery takes effect. "Converged mobile devices remain a much sought-after option for many consumers," noted Ramon Llamas, senior analyst, Mobile Devices Technology and Trends.
He added that users have come to realize what these devices can do beyond voice telephony, especially when it comes to running applications. In response, handset vendors have been building the product and applications portfolios to catch this wave of opportunity.
Technology research firm IDC said in a report that the global mobile phone sales are set to slide for the first time since 2001 as a result of the global economic crisis.
The report forecasts that total mobile phone volumes would be 1.9 per cent lower in 2009 than the 2008 levels, said a press release.
In 2001, the shipments had declined 2.3 per cent. Over the past several years, the mobile phone market has enjoyed double-digit annual growth due to an increased emphasis on emerging markets.
However, emerging market growth has been steadily slowing as these markets mature, the release said. IDC now expects worldwide growth to be just 7.1 per cent in 2008 before slipping into negative growth in 2009.
A number of major industry players, including component suppliers, handset makers, and operators have announced their concerns about handset volumes in 2009.
Most have indicated that they expect a year-over-year decrease due to the flagging global economy, the release added.
The report stated that it did not expect the downturn to continue past 2009, with the market in 2010 showing signs of revival as the economic recovery takes effect. "Converged mobile devices remain a much sought-after option for many consumers," noted Ramon Llamas, senior analyst, Mobile Devices Technology and Trends.
He added that users have come to realize what these devices can do beyond voice telephony, especially when it comes to running applications. In response, handset vendors have been building the product and applications portfolios to catch this wave of opportunity.
Will oil, gas spending drop in 2009?
Global spending on oil and gas exploration and production will shrink 12 per cent to $400 billion in 2009 as the steep slide in energy prices and tight credit markets reverse a six-year trend of rising budgets, analysts at Barclays Capital said on Friday.
Those spending cuts threat to curtail growth in oil and gas output, potentially supporting energy prices that have been in a freefall since hitting peaks in July. A steady stream of energy companies have been announcing budget cuts for 2009 as the price of oil slumped this week to its lowest levels in 4-1/2 years, and Barclays said that could be pushing spending even lower than its report showed.
Another analyst agreed, saying companies were being prudent during the economic crunch to protect cash reserves they had built up during the four-year run-up in energy prices. "My guess is the (report) is probably overstating what is going to be spent," said analyst James Halloran of National City Private Client Group, which manages $26 billon in assets.
Analysts said that while the drop in spending threatens to slow down growth in world energy production, the impact depends on how the smaller budgets are used. "It may be that a combination of higher utilization of more efficient rigs and lower costs of drilling will equal or more than compensate for the decline in the absolute amount of capital devoted to upstream expenditures," said Edward Morse, chief economist at LCM Commodities.
He added that oil firms may be negotiating with their suppliers and contractors to lower project costs. The soft energy market has also darkened the world oil supply picture by leading OPEC to announce three rounds of cuts that would trim 4.2 million barrels per day of oil production, or 5 percent of global output.
Spending in the United States is expected to show the sharpest drop, falling 26 percent to $79 billion from the 2008 mark of $106 billion, Barclays analysts James Crandell and James West said in their semiannual report based on a survey of oil and gas companies.
In the United States, Chesapeake Energy, the largest US natural gas producer, is expected to cut spending by 51 percent, the analysts said, while Devon Energy is likely to cut by 44 percent, EOG Resources by 34 percent and SandRidge Energy by 78 percent.
Oil prices peaked above $147 a barrel in July, but have tumbled more than 75 percent since then to trade near $35.75 a barrel as economic weakness hits fuel demand. Shares of oilfield service companies face the greatest risks from the cuts in spending, since it is their drilling rigs, maintenance operations and other activities that energy producers reduce when budgets are slashed.
But those stocks have already been battered, Halloran said, and may see only a limited impact from new reports of spending cuts. The Philadelphia Oil Service index, which includes companies like Schlumberger Ltd, Halliburton Co and Transocean Ltd, has fallen 68 percent since July.
Still, the Barclays analysts said they recommended shares of Weatherford International, Halliburton, Cameron International, Oceaneering International, Tidewater, Dril-Quip, Core Laboratories NV as the best sector bets.
Regions under pressure
Overall, companies' Canadian spending budgets will fall 23 percent to $22 billion, the lowest level since 1999. Husky Energy is likely to cut its spending 47 percent in Canada, while Devon's budget there will fall 71 percent, Talisman Energy by 47 percent and EnCana Corp by 16 percent.
Spending in the United States by Exxon Mobil, the world's largest publicly traded oil company, is likely to drop 17 percent, or $450 million, to $2.15 billion, while its Canadian budget will shrink 14 percent to $375 million. Its spending elswhere will rise 14 percent to $14.98 billion.
The overall drop in spending outside North America is expected to be a more moderate 6 percent to $300 billion. Russia, the UK North Sea, Saudi Arabia and Venezuela were expected to see some of the sharpest spending declines, while the rest of the Middle East, North Africa and Mexico were likely to post increases.
In 2008, spending rose about 22 percent globally, the analysts said. The analysts said the budget forecasts were based on average prices of $58 per barrel for oil and $6.35 per thousand cubic feet for natural gas.
Source; Agencies
Those spending cuts threat to curtail growth in oil and gas output, potentially supporting energy prices that have been in a freefall since hitting peaks in July. A steady stream of energy companies have been announcing budget cuts for 2009 as the price of oil slumped this week to its lowest levels in 4-1/2 years, and Barclays said that could be pushing spending even lower than its report showed.
Another analyst agreed, saying companies were being prudent during the economic crunch to protect cash reserves they had built up during the four-year run-up in energy prices. "My guess is the (report) is probably overstating what is going to be spent," said analyst James Halloran of National City Private Client Group, which manages $26 billon in assets.
Analysts said that while the drop in spending threatens to slow down growth in world energy production, the impact depends on how the smaller budgets are used. "It may be that a combination of higher utilization of more efficient rigs and lower costs of drilling will equal or more than compensate for the decline in the absolute amount of capital devoted to upstream expenditures," said Edward Morse, chief economist at LCM Commodities.
He added that oil firms may be negotiating with their suppliers and contractors to lower project costs. The soft energy market has also darkened the world oil supply picture by leading OPEC to announce three rounds of cuts that would trim 4.2 million barrels per day of oil production, or 5 percent of global output.
Spending in the United States is expected to show the sharpest drop, falling 26 percent to $79 billion from the 2008 mark of $106 billion, Barclays analysts James Crandell and James West said in their semiannual report based on a survey of oil and gas companies.
In the United States, Chesapeake Energy, the largest US natural gas producer, is expected to cut spending by 51 percent, the analysts said, while Devon Energy is likely to cut by 44 percent, EOG Resources by 34 percent and SandRidge Energy by 78 percent.
Oil prices peaked above $147 a barrel in July, but have tumbled more than 75 percent since then to trade near $35.75 a barrel as economic weakness hits fuel demand. Shares of oilfield service companies face the greatest risks from the cuts in spending, since it is their drilling rigs, maintenance operations and other activities that energy producers reduce when budgets are slashed.
But those stocks have already been battered, Halloran said, and may see only a limited impact from new reports of spending cuts. The Philadelphia Oil Service index, which includes companies like Schlumberger Ltd, Halliburton Co and Transocean Ltd, has fallen 68 percent since July.
Still, the Barclays analysts said they recommended shares of Weatherford International, Halliburton, Cameron International, Oceaneering International, Tidewater, Dril-Quip, Core Laboratories NV as the best sector bets.
Regions under pressure
Overall, companies' Canadian spending budgets will fall 23 percent to $22 billion, the lowest level since 1999. Husky Energy is likely to cut its spending 47 percent in Canada, while Devon's budget there will fall 71 percent, Talisman Energy by 47 percent and EnCana Corp by 16 percent.
Spending in the United States by Exxon Mobil, the world's largest publicly traded oil company, is likely to drop 17 percent, or $450 million, to $2.15 billion, while its Canadian budget will shrink 14 percent to $375 million. Its spending elswhere will rise 14 percent to $14.98 billion.
The overall drop in spending outside North America is expected to be a more moderate 6 percent to $300 billion. Russia, the UK North Sea, Saudi Arabia and Venezuela were expected to see some of the sharpest spending declines, while the rest of the Middle East, North Africa and Mexico were likely to post increases.
In 2008, spending rose about 22 percent globally, the analysts said. The analysts said the budget forecasts were based on average prices of $58 per barrel for oil and $6.35 per thousand cubic feet for natural gas.
Source; Agencies
Finally bailout approved: Automakers to get $17.4 bn
Citing danger to the national economy, the Bush administration approved an emergency bailout of the US auto industry on Friday, offering $17.4 billion in rescue loans in exchange for concessions from the deeply troubled carmakers and their workers.
The government will have the option of becoming a stockholder in the companies, much as it has with major banks, in effect partially nationalizing the industry.
At the same time, Treasury Secretary Henry Paulson said Congress should release the second $350 billion from the financial rescue fund that it approved in October to bail out huge financial institutions. Tapping the fund for the auto industry basically exhausts the first half of the $700 billion total, he said.
President Bush said, "Allowing the auto companies to collapse is not a responsible course of action." Bankruptcy, he said, would deal "an unacceptably painful blow to hardworking Americans" across the economy.
One official said $13.4 billion of the money would be available this month and next, $9.4 billion for General Motors Corp. and $4 billion for Chrysler LLC. Both companies have said they soon might be unable to pay their bills without federal help. Ford Motor Co. has said it does not need immediate help.
Bush's plan is designed to keep the auto industry running in the short term, passing the longer-range problem on to the incoming administration of President-elect Barack Obama.
Bush said the rescue package demanded concessions similar to those outlined in a bailout plan that was approved by the House but rejected by the Senate a week ago. It would give the automakers three months to come up with restructuring plans to become viable companies.
If they fail to produce a plan by March 31, the automakers will be required to repay the loans, which they would find very difficult.
"The time to make hard decisions to become viable is now, or the only option will be bankruptcy," Bush said. "The automakers and unions must understand what is at stake and make hard decisions necessary to reform."
He said the companies' workers should agree to wage and work rules that are competitive with foreign automakers by the end of next year.
And he called for elimination of a "jobs bank" program — negotiated by the United Auto Workers and the companies — under which laid-off workers receive unemployment benefits and supplemental pay from their companies for 48 weeks. If they remain laid off beyond that, they move to a jobs bank in which the company provides about 95% of their pay and benefits. Until the most recent contract, people could remain in the jobs bank for years. Early this month, the UAW agreed to suspend the program.
Under terms of the loan, GM and Chrysler must provide the government with stock warrants giving it the option to buy GM and Chrysler stock at a specific price.
In addition, the automakers would be required to agree to limits on executive pay and eliminate some perks such as corporate jets.
Paulson said that with the help for the carmakers, the government will have allocated the first half of the largest government bailout program in history.
He said he was confident that the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. have the resources to address a significant market crisis if one should occur before Congress approves the use of the second half of the rescue fund.
Paulson said he would discuss the process with congressional leaders and Obama's transition team "in the near future.
Source: Agencies
The government will have the option of becoming a stockholder in the companies, much as it has with major banks, in effect partially nationalizing the industry.
At the same time, Treasury Secretary Henry Paulson said Congress should release the second $350 billion from the financial rescue fund that it approved in October to bail out huge financial institutions. Tapping the fund for the auto industry basically exhausts the first half of the $700 billion total, he said.
President Bush said, "Allowing the auto companies to collapse is not a responsible course of action." Bankruptcy, he said, would deal "an unacceptably painful blow to hardworking Americans" across the economy.
One official said $13.4 billion of the money would be available this month and next, $9.4 billion for General Motors Corp. and $4 billion for Chrysler LLC. Both companies have said they soon might be unable to pay their bills without federal help. Ford Motor Co. has said it does not need immediate help.
Bush's plan is designed to keep the auto industry running in the short term, passing the longer-range problem on to the incoming administration of President-elect Barack Obama.
Bush said the rescue package demanded concessions similar to those outlined in a bailout plan that was approved by the House but rejected by the Senate a week ago. It would give the automakers three months to come up with restructuring plans to become viable companies.
If they fail to produce a plan by March 31, the automakers will be required to repay the loans, which they would find very difficult.
"The time to make hard decisions to become viable is now, or the only option will be bankruptcy," Bush said. "The automakers and unions must understand what is at stake and make hard decisions necessary to reform."
He said the companies' workers should agree to wage and work rules that are competitive with foreign automakers by the end of next year.
And he called for elimination of a "jobs bank" program — negotiated by the United Auto Workers and the companies — under which laid-off workers receive unemployment benefits and supplemental pay from their companies for 48 weeks. If they remain laid off beyond that, they move to a jobs bank in which the company provides about 95% of their pay and benefits. Until the most recent contract, people could remain in the jobs bank for years. Early this month, the UAW agreed to suspend the program.
Under terms of the loan, GM and Chrysler must provide the government with stock warrants giving it the option to buy GM and Chrysler stock at a specific price.
In addition, the automakers would be required to agree to limits on executive pay and eliminate some perks such as corporate jets.
Paulson said that with the help for the carmakers, the government will have allocated the first half of the largest government bailout program in history.
He said he was confident that the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. have the resources to address a significant market crisis if one should occur before Congress approves the use of the second half of the rescue fund.
Paulson said he would discuss the process with congressional leaders and Obama's transition team "in the near future.
Source: Agencies
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