Microsoft CEO Steve Ballmer expressed hope yesterday that the US Congress would take action to address a deepening financial crisis, which he warned could ripple across spending on all levels of the economy.
Steve Ballmer
(Credit: Microsoft)
On Monday, the US House of Representatives rejected a US$700 billion bailout plan proposed by the White House.
"I trust that before the end of the week, we have some resolution, at least in the US Congress, that will help to stabilise the situation. We need that; I hope we get that," Ballmer said at a news conference in Oslo, Norway, according to the Reuters news agency.
After the vote on the bailout plan fell through Monday in the US, Microsoft called for Congress to reconsider the legislation in order to "re-instill confidence and stability in the financial markets."
The financial crisis, Ballmer noted, extended beyond the borders of the United States to European banks, and affected businesses and consumers generally.
"Financial issues are going to affect both business spending and consumer spending, and particularly ... spending by the financial services industry," Reuters quoted Ballmer as saying.
Following the massive Wall Street sell-off, Microsoft on Monday called on Congress to revisit its bailout decision, saying government action was "vitally important."
"Microsoft strongly urges members of the U.S. House of Representatives to reconsider and to support legislation that will re-instill confidence and stability in the financial markets," general counsel Brad Smith said in a statement.
I trust that before the end of the week, we have some resolution
Steve Ballmer
"This legislation is vitally important to the health and preservation of jobs in all sectors of the economy of Washington State and the nation, and we urge Congress to act swiftly."
The move follows the largest one-day point decline ever for the Dow Jones Industrial Average, a drop of 777.68 points or almost 7 per cent. Microsoft shares, which had held to a less than 5 per cent drop for much of the day Monday, closed at US$25.01, down US$2.39 or more than 8.7 per cent.
The House voted down the US$700 billion bailout plan by a vote of 228 to 205, with 133 Republicans and 95 Democrats casting "no" votes.
Congressional leaders of both parties proceeded to blame one another for the bill's failure on Monday, with minority leader John Boehner blaming a partisan speech from House Speaker Nancy Pelosi, while Pelosi insisted that Democrats held up their end of the deal.
