NPR 2008-07-12

One of the nation's largest independent mortgage lenders has been taken over by the federal government after determination the California-based thrift 1 was unsound. The decision by the Office of Thrift Supervision 2 comes after efforts by IndyMac to raise capital and stay afloat amid tumbling home prices and soaring foreclosures failed. The takeover of IndyMac is one of the largest closures of a financial institution in US history.Federal Deposit Insurance Corporation, which is taking over Indymac, estimates the cost of the bank's failure to its insurance fund will be between four and eight billion dollars. That news came after the stock market had closed.

Meanwhile, the bears were rampaging on Wall Street again today. The Dow Jones Industrial Average briefly 3 fell below 11,000 for the first time in two years. NPR's Jim Zarroli reports.

Once again, the twin threats of rising oil prices and the credit market downturn hit stocks hard. Investors 4 were once again worried about the fate of the mortgage finance giants Freddie Mac and Fannie Mae. A report in the New York Times said the government was considering a rescue plan for the companies. Their shares fell sharply although they later rebounded 5. That happened after an unconfirmed report later denied that the Fed was ready to open its discount lending window to the companies. Meanwhile, oil prices hit $147 a barrel before falling back again. Iran's missile tests have revived worries about unrest in the Middle East, and a labor 6 strike by Brazilian oil workers is imminent 7. Jim Zarroli, NPR News, New York.

With shares of Fannie Mae and Freddie Mac essentially 8 in free fall today, President Bush was given a private briefing on the situation by Treasury 9 Secretary Henry Paulson. Paulson assured the president, along with Federal Reserve Board Chairman Ben Bernanke, he would be working on the issue.

Democratic presidential hopeful Barack Obama says the US can't afford to wait for bold action on the energy front. Obama outlined his plans during a campaign stop in Ohio. NPR's Scott Horsley reports.

Obama blamed high oil prices for threatened job losses at an Ohio auto 10 plant, an airline and a cargo 11 facility. He says the US needs to cut its dependence 12 on imported oil for the sake of jobs as well as the environment and national security. Obama quoted his Republican rival John McCain who said short-sighted politicians are to blame for fostering that  foreign oil dependence over the last thirty years. “I could not agree more, John McCain is exactly right. The only problem is that during those thirty years of inaction, Senator McCain was one of those politicians in Washington for 26.” Obama criticized McCain for failing to back government investment in alternative sources of energy, and much more stringent 13 fuel economy standards.Scott Horsley,NPR News,Dayton Ohio.

On Wall Street,the Dow Jones Industrial Average fell 128 points to close at 11,100. For the week,the Dow lost 1.6 percent. The NASDAQ fell 18 points. The S&P dropped 13 points today.

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 Defense Department officials now say they have confirmed remains 14 found Wednesday in Iraq were those of two US soldiers kidnapped in May of last year. Military says Army Sergeant 15 Alex Jimenez and Private Byron Fouty were kidnapped in a volatile  area south of Baghdad. Fouty's stepfather said he is still in shock after a military notification team came to his home in Michigan yesterday. However, he also said the news comes as sad relief to finally know what happened.

 The Bush administration was pushing the UN Security Council to punish Zimbabwe's president for political violence in the country,but the resolution to impose targeted sanctions failed today, as NPR's Michele Kelemen reports.

Britain's ambassador to the UN, John Sawers, called it “a missed opportunity” to help resolve the violence and oppression in Zimbabwe. “The Security Council has failed to shoulder its responsibility to do what it can to prevent a national tragedy deepening and spreading its effects across southern Africa.”  Russia and China both vetoed the resolution which would have imposed an arms embargo 16 in Zimbabwe, and financial and travel restrictions 17 on 14 officials including President Robert Mugabe. Council members were divided as to whether the sanctions would pressure Mugabe and his supporters  to negotiate with the opposition 18 or whether they would complicate 19 the situation. Mugabe went ahead with the run-off, even after his opponent pulled out in the face of political violence. The Bush administration called the election "a sham 20". Michele Kelemen, NPR News, Washington.

President Bush today continued his efforts to prod 21 Congress to permit drilling for oil in offshore 22 waters and in the Alaskan wildlife refuge as a means of bringing down gas prices. Mr. Bush, at a meeting with his senior economic advisors 23, said one answer to soaring prices for gasoline and oil is to increase supply by tapping the vast potential of crude oil reserves in those spots.