NPR 2008-09-18

The Treasury 1 Department said today it would issue new debt to raise money for the Federal Reserve. It comes just after the government announced another multi-billion-dollar bailout on Wall Street. NPR's Yuki Noguchi reports.

Treasury took the unusual step of announcing a special program to help raise funds to manage the Fed's balance sheet. This follows an even more unusual move the night before. After no private investors 2 expressed interest, the Federal Reserve took the unprecedented 3 measure of spending 85 billion dollars in an emergency loan to save insurance giant AIG. Earlier this year, the Fed also stepped in to back troubled investment firm Bear Stearns, enabling its sale to JPMorgan. Such measures aimed at shoring up the roiling 4 financial sector 5 have strained the Fed's balance sheets. Yuki Noguchi, NPR News, Washington.

Despite the government bailout for AIG, it looks like the fear and anxiety is not abating 6 on Wall Street today. Stocks after a brief rebound 7 from Monday's 500-plus-point decline were firmly back in negative territory again today. The White House did its best to put a positive spin on the latest developments, saying it backs the decision to provide AIG with an 85-billion-dollar bridge loan. White House Press Secretary Dana Perino did not rule out further bailouts, saying that given the company's scope, letting it fail would've posed too big a risk to the overall economy.

On Wall Street, the Dow fell 449 points today. The NASDAQ lost 109 points. The S&P was down 57 points.

Residents of Galveston made an attempt to return to their homes today to assess damages from Hurricane Ike, but for many it turned out to be an exercise in frustration 8. After spending hours in traffic, those who did make it to Galveston Island were turned away at the bridge. City officials had announced yesterday that residents could briefly 9 return to examine their properties but then changed their minds. In the Houston area, cleanup operations also continue today. Homeland Security Secretary Michael Chertoff promised issues there will be addressed. "Those whose butts 10 need to be kicked will feel it in their butts. " Chertoff's appearance comes a day after local officials complained that relief supplies for victims of the storm have been slow in reaching distribution points.

Far from Hurricane Ike, residents in the Midwest are still recovering from damages. Bill Cohen of Ohio Public Radio reports.

Right after the 70-mile an hour winds toppled utility poles and snapped power lines, more than two million customers here were without power. So the latest number is a big improvement. Still it could be Sunday before all Ohioans have their electricity restored. Ralph DiNicola of the utility giant FirstEnergy explains why. "You get the big restoration early on and then the last 10% may take almost as long as the first 90% to restore. " Food has begun to spoil inside some people's refrigerators. In fact, a Columbus area landfill reports said that one supermarket alone is dumping nearly 200 tons of food because it had been in freezers where the temperature rose above government guidelines. For NPR News, I'm Bill Cohen in Columbus.

In Ohio alone more than 800, 000 people are still without power.

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Top executives from the auto 11 industry today are asking House Speaker Nancy Pelosi to fund a 25-billion-dollar loan program. They say it would enable them to modernize 12 their plants and build more fuel efficient vehicles. Leaders of GM, Ford 13 and Chrysler, in a letter to Pelosi, said while they are committed to building more fuel-efficient models, the industry faces significant challenges due to the downturn in the US economy. Auto industry executives said they planned to meet Pelosi and other congressional leaders on Capitol Hill to further make their case.

Norman Whitfield has died. Whitfield was a songwriter and producer at Motown during its golden era. He died Tuesday in Los Angeles of complications from diabetes 14. He was 67 years old. NPR's Neda Ulaby reports Whitfield co-wrote some of the biggest hits of his day.

I Heard It Through The Grapevine, the theme from Car Wash and this Grammy winner from 1972. Norman Whitfield was born in Harlem but landed in Detroit as a teenager when his father's car broke down there. He started working at Motown right after high school. Whitfield soon developed a reputation for being so meticulous 15 about sound. He became head of Motown's quality control division. He also helped push the label beyond its trademark 16 slick soul into a political and social commentary. Norman Whitfield reached a low point with the conviction for tax evasion 17 in 2005. He served a sentence at home because of his failing health. Neda Ulaby, NPR News.