Texas?? top securities regulator has threatened to ban UBS from doing business in the state until investors who bought auction rate securities from the Swiss bank get their money back.
Shares in Dexia crashed on Tuesday after ratings agency Moody??s said it could strip the Belgian-French financial services group??s U.S. bond insurance subsidiary FSA of its triple A status.
Hank Paulson, Treasury secretary, said: ??Our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission,? signalling that the Bush administration was not contemplating a rescue takeover of the two groups and wanted public shareholders to continue owning them.