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The U.K. and Spain raced to buttress their banking systems after European policy makers failed to form a united front to combat the deepening financial crisis.

British Prime Minister Gordon Brown's government will invest as much as 50 billion pounds ($87 billion) in struggling banks and the Bank of England will provide at least 200 billion pounds of loans. Spain will spend as much as 50 billion euros ($68 billion) to buy bank assets, the first move by a European nation to copy the U.S. strategy.

The measures are biggest in a series of go-it-alone initiatives by national governments after European Union leaders proved unable to develop a plan acceptable to all its 27 nations. With European Central Bank President Jean-Claude Trichet powerless under legal limits to intervene, more governments may pursue a unilateral approach.

“It has clearly been impossible to have coordinated action,'' Marco Annunziata, chief economist at Unicredit MIB in London, said in an interview. “Once one country moves ahead, it becomes more difficult for others not to do the same.''

Spain and the U.K. acted after three days of separate EU talks in Paris and Luxembourg fell short of a common approach to the banking crisis that has engulfed their economies. While Italy and France proposed a rescue fund similar to the $700 billion plan now being rolled out in the U.S., Germany balked at the cost and questioned its necessity.

EU Principles

Without a pact to implement, EU finance ministers yesterday agreed to a set of principles that pledged communication and taking account of the cross-border implications of their decisions, while freeing each government to act as it saw fit.

Investors responded to the division by dumping stocks. The Dow Jones Stoxx 600 Index tumbled for a third day today before paring the decline in the wake of a coordinated emergency interest-rate cut by the major central banks. The gauge, down 35 percent this year, had plunged by the most since 1987 on Oct. 6.

“Markets would have much preferred a more common approach and something similar to the U.S., but we don't have the same federal system as the U.S.,'' said Mark Wall, an economist in London at Deutsche Bank AG.

Europe is struggling to find a comprehensive approach because power is disseminated through 27 capitals, and there is a minimal budget for the bloc. That raises the stakes for not having a joint plan in the event a large bank with interests across many borders fails.

No Point Man

The region also lacks a point man akin to U.S. Treasury Secretary Henry Paulson or Federal Reserve Chairman Ben S. Bernanke. While Trichet would be one candidate for such a role, he lacks the Fed chief's legal authority to help bail out banks. That power has enabled Bernanke to extend credit to financial companies such as Bear Stearns Cos. to stave off their collapse. Trichet has had little option but to stand by and watch as governments bicker.

“The mandate and structure of the ECB mean it doesn't have the powers and flexibility of the Fed,'' said Neil Mackinnon, chief economist at ECU Group Plc in London (pay day loan).

Under the 1992 Maastricht Treaty that created it, the ECB can grease the wheels of the banking system, as it has been doing with cash auctions. It doesn't supervise banks and is not required to ensure their financial health.

Trichet himself noted the bank's constraints yesterday at a conference in Evian, France, saying: “There are limits to what we can do, as we can't intervene with solvency problems.''

The ECB may eventually be awarded greater authority to aid banks that fail across multiple borders, said Klaus Baader, chief European economist at Merrill Lynch & Co. in London. “Regulation is clearly going to be rewritten and when it is, the ECB's role will be enhanced,'' said Baader.

Heading to Recession

For now, the central bank is moving to underpin confidence by lowering interest rates. The ECB joined the Federal Reserve, Bank of England, Bank of Canada and Sweden's Riksbank in reducing their benchmark rates by half a percentage point. Swiss and Chinese central banks also lowered key rates.

Credit Suisse Group and JPMorgan Chase & Co. have declared the first region-wide recession since the single currency began in 1999 and predict the economy will contract over 2009. Credit Suisse says the economy will shrink until next June, resulting in a 0.3 percent decline over the year, compared with 1.4 percent growth in the U.S.

“The outlook for the European economy is grim,'' said Mackinnon.

U.K. Bailouts

Under Brown's plan in the U.K., lenders including Royal Bank of Scotland Group Plc would be eligible for additional guarantees on customer deposits, immediate cash injections and subsequent payments should credit markets deteriorate.

The proposal followed a meeting among Brown, Chancellor of the Exchequer Alistair Darling, Bank of England Governor Mervyn King and the country's financial-services regulator.

The U.K. government already has stepped in to bail out Bradford & Bingley Plc and broker Lloyds TSB Group Plc's takeover of HBOS Plc. It also nationalized Northern Rock Plc in February after the first run on deposits in more than a century.

In Spain, Prime Minister Jose Luis Rodriguez Zapatero said in Madrid yesterday that the fund will buy assets “of the highest quality'' from all banks operating in the country. The funds set aside equal almost a third of the proposed 2009 central government budget.

“We don't know what the assets are,'' said Inigo Lecubarri, a manager at Abaco Financials Fund in London. “I'd guess they're probably mortgage-backed securities of some sort. The key is how much the government pays for them and we don't know that yet.''

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Citigroup Inc., Wachovia Corp. and Wells Fargo & Co., in consultation with the Federal Reserve, have agreed to a two-day standstill on litigation in an effort to reach a resolution on the sale of the Charlotte bank.

The three companies will halt all formal litigation, effective immediately, until noon Wednesday, in an effort to resolve the sale.

A week ago, the Federal Deposit Insurance Corp. announced that Citi would purchase Wachovia’s banking operations for $2.16 billion. But on Friday, Wells announced a surprise deal to purchase the entire company for $15 billion.

The Wall Street Journal reports the companies are now working with regulators to reach a compromise deal that would result in Wachovia’s assets being divided between the two suitors (fast cash loan).

Since Wells’ Friday announcement, Citi has cried foul. On Monday, it filed a suit in New York state supreme court seeking more than $60 billion in damages. Wachovia filed suit in federal court over the weekend in an attempt to stop Citi from derailing the Wells deal.

“We are pleased to participate with the Federal Reserve Board in a fair-minded, good-faith process to achieve a prompt and successful outcome,” Citi said in a statement.

Sourse

The European Union threatened to re-impose tariffs on shoes from China and Vietnam over the objections of EU consumers, seeking to protect Italian, Spanish and Portuguese producers.

The EU opened a review into whether to let lapse the duties of up to 16.5 percent on Chinese and Vietnamese leather footwear. The levies, which were due to expire Oct. 7 after two years, will now automatically stay in place for as long as 15 months while the EU examines whether to re-apply the trade protection to counter below-cost — or “dumped'' — imports.

The review “will determine whether the expiry of the measures would be likely, or unlikely, to lead to a continuation or recurrence of dumping and injury,'' the European Commission, the 27-nation EU's regulatory arm in Brussels, said today in the Official Journal.

The case risks reopening a split in the EU over the need to shield 8,000 leather-shoe manufacturers, mainly small businesses in southern Europe, from cheaper imports. Four-fifths of the bloc's leather shoes come from Italy, Portugal and Spain, which face objections to the trade protection from northern nations.

The EU's 2006 decision to impose the levies on 9.7 billion euros ($13.4 billion) of Chinese and Vietnamese footwear for two years was a compromise because such anti-dumping measures usually last for five years. The levies are 16.5 percent for China and 10 percent for Vietnam.

More than 40,000 Vietnamese workers have lost jobs since the EU imposed the duties, the Vietnam Leather and Footwear Association said in September. Vietnam's concerns have been echoed by EU retail and consumer groups.

Price Increases

“Consumers, who already face huge price increases, namely in the food and energy sectors, have had to pay the bill for long enough,'' Monique Goyens, director general of the European Consumers' Organisation, said Oct (quick payday loan). 2. “The continuation of the protectionist anti-dumping duties on shoe imports is a missed opportunity for the EU to take their concerns seriously, rather than continuing old-fashioned protectionist policies.''

In a sign of the internal political battle that may erupt again in Europe, 15 EU nations were opposed to opening an expiration review while 12 countries endorsed it when the commission consulted them in September.

The commission, which said the legal conditions are “clearly met'' for a review, pledged to try to complete it in less than 12 months to 15 months. The commission will have to make a recommendation to EU governments on whether to renew the trade protection.

Chinese Exporters

Five months ago, the EU extended the 16.5 percent duty to Macau after concluding that Chinese exporters shipped leather footwear via the former Portuguese colony or assembled the shoes there to dodge the levy. Macau, a special administrative region of China, wasn't subject to the duty, which Chinese shoemakers including Aokang Group opposed.

The expiry review stems from a June 30 request by the European Confederation of the Footwear Industry, the Brussels- based lobby group that filed the original demand for trade protection against China and Vietnam.

The lobby group cited Chinese circumvention via Macau as a reason for re-imposing the measures, the commission said. The group also alleged continued dumping by Chinese and Vietnamese exporters and the risk of injury should the measures lapse, according to the commission.

The levies imposed two years ago applied to 174 million pairs of shoes from China and 103 million pairs from Vietnam. In 2006, before the two-year duties were imposed, the EU said those shoes had an average retail price of 35 euros a pair.

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OMAHA, Neb. — Warren Buffett’s Berkshire Hathaway Inc. is investing $3 billion in General Electric Co., a huge vote of confidence for an iconic American company battered by the credit crisis.

It is the second time in just more than a week that Berkshire Hathaway has moved to shore up a company long known for its ironclad fiscal health. Buffett bought a $5 billion stake in Goldman Sachs last week when the investment bank’s shares had slumped after the failure of Bear Stearns and Lehman Brothers.

GE’s shares have dropped 42 percent in the past year, badly hurt by its financing business, which accounts for nearly half its profit, and has taken a big hit from falling consumer confidence, tighter credit and the collapse of housing markets.

But Buffett on Thursday praised Fairfield, Conn.-based, GE, which makes everything from light bulbs to jet engines and owns NBC television.

"GE is the symbol of American business to the world," Buffett said. It has "strong global brands and businesses … I am confident that GE will continue to be successful in the years to come."

Analysts said Buffett’s endorsement will mean as much or even more than Berkshire’s cash.

"He’s a smart guy, and he wouldn’t get involved if he doesn’t think it’s a great company. It’s a nice endorsement. He doesn’t make too many mistakes," said analyst Mike McGarr of Becker Capital in Portland, Ore.

Berkshire, based in Omaha, Neb., is buying $3 billion of preferred shares of GE, which carry a 10 percent dividend cheap payday loans no teletrak payday loans. The terms are similar to those Buffett struck with Goldman Sachs. Berkshire also has the option to buy $3 billion worth of GE common shares for $22.25 each at any time over five years. That was below GE’s closing share price of $24.50 on Thursday.

GE also plans to sell at least $12 billion worth of common stock to the public.

The value of stock sold to the public and Buffett totals $15 billion, enhancing GE’s flexibility and giving the company "the opportunity to play offense in this market should conditions allow," said GE Chief Executive Jeffrey Immelt.

GE’s share value has fallen during the financial crisis on Wall Street over the last several weeks. Last week, GE warned GE Capital would hurt overall earnings, lowering them about 10 percent, to between $19.5 billion and $21 billion, or $1.95 to $2.10 per share.

Shares of GE fell by nearly 10 percent early Wednesday after a negative analyst note. But the stock pared its losses on the Berkshire news, closing down $1, or 3.9 percent, at $24.50.

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New Wichita housing starts were down 32 percent year-over-year in June, according to the June TREM report, which was issued by First American Title this week.

The number of building permits issued in June in Derby, Maize and Haysville were up over last year. They were down in Andover and Valley Center.

Through the first six months of the year, Wichita building permits were off 2 percent from 2007 us fast cash online payday advance. Foreclosures for the year also were up over 2007, but they trailed 2006 figures.

Capitol Federal Savings led all mortgage lenders in June, originating $18 million in home loans. Home sales were down for the month.

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Japan's largest manufacturers turned pessimistic about their prospects for the first time in five years as the deepening U.S. financial crisis stifled demand in the country's export markets.

The Tankan index of confidence among big makers of cars and electronics slid to minus 3 points in September from 5 in June, a fourth quarterly drop, the Bank of Japan said today in Tokyo. The negative reading means that pessimists outnumbered optimists for the first time since 2003.

Japan's benchmark stock Nikkei 225 Stock Average has lost a quarter of its value this year as exports slumped and corporate profits fell. Fallout from the global credit crunch is slowing growth in China and other markets that Toyota Motor Corp. relied upon as sales to the U.S. slid.

“Global demand is going to worsen,'' said Tomoko Fujii, head of economics and strategy at Bank of America Corp. in Tokyo. “Today's results only partly reflect the effect of the financial crisis.''

The Bank of Japan said between 70 percent and 80 percent of executives surveyed filled out their questionnaires by Sept. 10, before the bankruptcy of Lehman Brothers Holdings Inc. and the rescue of at least five banks by European governments.

Large manufacturers may now reconsider spending plans outlined in today's survey, said Martin Schulz, a senior economist at Fujitsu Research Institute Ltd. in Tokyo. The Tankan showed they plan to increase capital spending by 1.7 percent in the year to March 31.

`Different World'

“We're living in a different world now,'' said Schulz. “The production cuts we've seen are just the beginning. Companies are going to start to adjust their whole strategies.''

The Nikkei 225 rose 1 percent today, rebounding from a 4.1 percent drop yesterday on speculation the U.S payday loans instant payday loan. Senate will approve the $700 billion bank rescue plan that has been stalled in Congress.

Large manufacturers said they expect the yen to rise to an average of 102.82 per dollar for the fiscal year, making exports less competitive. The yen traded at 106.06 at 4:01 p.m. in Tokyo from 106.06 before the Tankan was published.

Reviving Japan's economy will be one of the main issues Prime Minister Taro Aso confronts as he prepares for an election that must be called by September. Aso, who became Japan's leader last month, has pledged to cut taxes and boost spending to spur the economy.

Auto Production Drop

Japan's three largest carmakers — Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. — all cut domestic production in August. Auto exports to the U.S. declined 30 percent in the month. Another report today showed domestic auto sales slumped in September, giving the country's carmakers the worst fiscal first half in 34 years.

Confidence among the smaller companies that employ about 70 percent of Japan's workers also fell to its lowest level in five years, the survey showed. Wages declined for the first time this year in August, according to another report today.

Akebono Brake Industry Co., a Toyota supplier with 3,800 domestic employees, is one of several parts makers that have cut profit forecasts in the past month, citing weaker U.S. car sales.

“We're affected by what happens to our customers,'' said Yoshio Arai, a spokesman at Akebono, a maker of brake and clutch parts. “We'll need to cut output.''

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