AFP - The US government has abandoned plans to buy up the toxic mortgage assets at the heart of the global financial crisis, a reversal that helped send ailing world markets spiralling even lower.

AP - While the Bush administration shifts course on its $700 billion rescue plan, Congress is examining whether even bigger changes should be made in the program in light of the deteriorating economy and soaring mortgage foreclosures.

Reuters - Fannie Mae , once a mortgage giant, could post losses totaling $20 billion to $40 billion in the next four quarters, as elevated credit costs continue to hurt the company's capital position, an analyst at FBR Capital Markets said.

AFP - US authorities are scrapping plans to buy up toxic mortgages securities and shifting the focus of a massive financial rescue plan, Treasury Secretary Henry Paulson said Wednesday.

Reuters - Legislation is needed to address mortgage servicing companies' failure to do enough to help distressed borrowers stay in their homes, the head of a key U.S. congressional committee said on Wednesday.

AP - Wall Street remained weary Wednesday, disheartened by more signs of economic stress — including dismal reports from major retailers, a bleak outlook for the nation's auto industry and additional job cuts in the already beaten-down financial sector.

Reuters - The Treasury backed away from using a $700 billion bailout fund to cleanse bank balance sheets of toxic mortgage debt, while Europe reported more gloomy economic news and the World Bank warned that international trade may contract in 2009.

Reuters - Stocks tumbled on Wednesday as gloomy news pointing to the worsening scope of problems buffeting the U.S. economy diminished investors' appetite for risk.

AFP - US authorities have scrapped plans to buy up toxic mortgage securities and are shifting the focus of a massive financial rescue plan, Treasury Secretary Henry Paulson said Wednesday.

Reuters - The Bush administration on Wednesday publicly backed away from using a $700 billion bailout fund to buy toxic mortgage assets as originally intended, and said it will focus instead on shoring up financial institutions with direct investments.

AP - Wall Street got another dose of painful reality Tuesday and sent stocks diving as investors recognized that few industries are safe from the consumer spending slump — whether they're building homes, making cars or selling coffee. The Dow Jones industrial average lifted off its lows of the day, but still closed down nearly 180 points.

Reuters - Stocks fell on Tuesday as faltering demand at aluminum maker Alcoa and a dismal outlook from Tyco International showed the global economic slowdown is deepening.

AFP - The US government Tuesday announced a sweeping program to ease payment terms for hundreds of thousands of homeowners struggling to service mortgages held by home finance giants Fannie Mae and Freddie Mac.