The Treasury’s plan to inject $250 billion in capital directly into US banks is underway. But William Patalon III says some of these taxpayer funds will be used by big banks to acquire junior competitors. This means the increase in lending that the plan is supposed to spark will be modest at best. And less competition in the banking sector could mean a rise in fees going forward.

OPEC to Meet in November; Iceland Melts Down; Unemployment Improves; Micron Makes Cuts; National City Next to Fall?; No Christmas Cheer for Retailers

U.S. stocks soared yesterday (Tuesday) - with the Dow Jones Industrial Average gaining 485 points in posting its third-biggest point gain ever - as investors surged back into stocks just one day after the surprise rejection of a $700 billion bailout plan touched off a record sell-off.

Housing starts made a sizeable 11.6% jump in June, the Commerce Department announced yesterday (Thursday). However the surprising surge was explained by a change in New York City code law, rather than a true turnaround in the troubled housing market.