NPR 2008-03-18

From NPR News in Washington, I'm Carl Kasell.

The Federal Reserve is moving to calm jitters 1 in the financial markets amid a credit crunch 2 that's already claimed one of the biggest Wall Street firms. NPR's Scott Horsley reports.

Bear Stearns agreed over the weekend to sell itself to Wall Street rival JPMorgan Chase for the fire-sale price of just two dollars a share. The 85-year-old Bear Stearns, which had been a major investor 3 in mortgage-backed securities, saw most of its value evaporate over the last two weeks. The Federal Reserve quickly approved the sale and took additional steps to shore up shaky financial markets. Without waiting for its regular meeting on Tuesday, the Fed lowered the discount rate it charges on loans to banks by a quarter percentage point. The Fed also set up a new lending facility which can provide Wall Street firms with financing for at least six months. The Fed is expected to approve further rate cuts this week as it tries to combat the spreading credit crunch. Scott Horsley, NPR News.

Vice 4 President Dick Cheney arrived in Iraq today to speak to US and Iraqi officials as part of a nine-day Mid-East swing. For security reasons, the trip was not announced ahead of time. NPR's Dina Temple-Raston reports from Baghdad.

The vice president comes to Baghdad at a time when it's unclear whether the lull 5 in violence Iraq has enjoyed in recent months is going to continue. A drawdown of US troops to about 140,000 is supposed to be completed in July. The question of whether more troops follow them home depends on whether violence continues to decline. Cheney has been a vocal 6 supporter of the so-called "surge" strategy, in which a flood of US military troops were brought in to tamp 8 down violence and give the Iraqi government room to make some political progress. The general feeling has been that the al-Maliki government hasn't taken advantage of the opportunity. Few laws have been passed and little reconciliation 9 has been achieved. Cheney is expected to assess that for himself while he's here. Dina Temple-Raston, NPR News, Baghdad.

Democrats 10 Barack Obama and Hillary Clinton took the day off from campaigning yesterday, but their surrogates were speaking out. Strategists for Obama are demanding the Clinton release more financial documents. Clinton's strategist Mark Penn says that the Obama campaign has repeatedly shifted negative when they find the momentum 11 working against them. Today, Obama heads to Pennsylvania to campaign. Clinton is giving a speech on the Iraq War in Washington.

Japanese stock prices plunged 12 today after JPMorgan said it would buy the troubled US investment bank Bear Stearns. The Nikkei average fell by 454 points or 3.7 percent. Oil prices jumped to an all-time trading high in Asian trading. US light crude for April delivery hit a record $111.80 a barrel, up $1.59 from Friday's close in electronic trading on the New York Mercantile Exchange at mid-morning. It later fell back to $111.61 a barrel.

This is NPR News.

The brackets are set for this year's NCAA Men's Basketball Tournament. Scott Graf from member station WFAE reports from Charlotte.

North Carolina was awarded the top overall seed in the field of 65, joining Kansas, UCLA and Memphis who top their respective regions. North Carolina locked up its No.1 seed by winning the ACC Tournament in Charlotte over the weekend. The NCAA selection committee awarded the Tar 7 Heels by allowing them to begin play in Raleigh, just miles away from their Chapel 13 Hill campus. They could advance to the final four without ever having to leave the State of North Carolina. Schools from the so-called power conferences received 28 at-large bids, compared to six from smaller schools. Two-time defending champion Florida is not in this year's field. The tournament's play-in game kicks off action tomorrow. The rest of the field would be featured in first round match-ups on Thursday and Friday. For NPR News, I'm Scott Graf in Charlotte.

A blinding snowstorm and unsafe driving led to a huge pile-up in Arizona that left two people dead and at least ten others seriously injured. Authorities say that the accident forced the closure of Interstate 40 near Flagstaff in both directions yesterday. Rescuers used hydraulic 14 equipment and hand tools to pry 15 some people from the wreckage 16. According to the National Weather Service, nearly four inches of snow fell in the area, and there were on and off whiteout conditions. The initial cause of the pile-up is believed to be a passenger vehicle traveling too fast and losing control, leading to a chain-reaction crash. The Arizona Department of Public Safety says that the weather was only a contributing factor.

I'm Carl Kasell, NPR News in Washington.