Wall Street Loses Faith That Congress Will Rescue States, Cities
- Investors, analysts widely anticipated aid in stimulus bill
- BofA, once expecting $400 billion, says expectations ‘fading’
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Wall Street banks are losing confidence that Congress will soon provide a rescue for states and cities that have seen tax collections tumble because of the recession.
Bank of America Corp. analysts, who earlier predicted that that the federal government would extend as much as $400 billion of aid by the end of September, said in a note Friday that their expectations of a stimulus package by the November election were “fading.” Barclays Plc strategists made a similar call.