Not all bankers are happy with the federal government's $250 billion rescue of the banking industry. Some smaller banks complain that the "big boys," who have played fast and loose financial games, are not being held accountable for their lending practices -- and that smaller banks, which have been cautious and fiscally conservative, might wind up at a competive disadvantage. (Image from Tracy O.)

In a deteriorating economy, there's good news and bad news for investors in St. Louis bank stocks. The bad news is that most of these stocks have declined for the 12 months ended Oct. 10. The good news is that they have done better -- or, rather, less worse -- than the Standard & Poor's 500-stock index (down 42 percent) and the S&P Banking Index of larger banks (down 59 percent). In general, the picture for Midwest banks is brighter than for coastal ones. 

The government expects some things in return for its $250 billion investment in banks. More lending. Help for struggling homeowners. Limits on dividends and executive compensation. President Bush and Treasury Secretary Paulson say the changes are temprorary. But they inject government into the financial sector more than any time since the 1930s. | Wall Street Journal

How Paulson made the big banks an offer they couldn't refuse. | New York Times

Wells Fargo emerged late Thursday as Wachovia's sole buyer. Citigroup walked away from talks that would have given it part of Wachovia but will sue for $60 billion. New York Times story.

The new owner of Wachovia's St. Louis-based brokerage unit will have to do a repair job on the firm's reputation. Recent opinion polls -- of brokerage employees and customers -- show that the old A.G. Edwards ranked higher in satisfaction than the new Wachovia Securities, which includes A.G. Edwards and Wachovia's original brokerage.

G.M. and Chrysler are talking about a possible merger, sources told the New York Times. They called the talks preliminary and put the odds at 50-50. | New York Times

The president praised finance ministers from the seven largest industrial nation for promising concerted action on the economy. Meeting in Washington, the ministers agreed on the concept but did not list specific steps. | Washington Post

In a new step to ease the financial crisis, the Federal Reserve will buy up the short term loans that fund the daily operations of banks and ordinary businesses. This direct support for individual businesses marks a radical role shift. | Washington Post. Stocks drop more than 500 points Tuesday despite a hint that the Fed might lower interest rates. | New York Times 

Douglas Holtz Eakin, speaking for the McCain campaign, and Austan Dean Goolsbee, speaking for the Obama campaign, debated economic issues this morning. Each talked about the votes on the rescue plan voted on Wednesday evening.

A darkening economic climate is making the path to InBev's purchase of Anheuser-Busch a bit more interesting than the companies had hoped. Financial turmoil in the United States, a bond-rating firm's downgrade and a multibillion dollar infusion for one of InBev's lenders have tossed unwelcome headlines in the way of a deal that the companies and analysts still say will completed by year-end.