News Today - May 22

* The Obama administration announced that it has invested $7.5 billion in GMAC, aiming to prop up the troubled lender and boost its ability to make loans to Chrysler dealers and customers. full story

* Britain may lose its AAA credit rating for the first time as government finances deteriorate in the worst recession since World War II. Standard & Poor’s lowered its outlook on Britain to “negative” from “stable” and said the nation faces a one in three chance of a ratings cut as debt approaches 100% of gross domestic product.

* Stocks closed sharply lower Thursday as optimism about a global economic recovery was tempered by mixed data and a potential downgrade of the United Kingdom's credit rating.

* The Japanese yen touches its highest level in two months against the U.S. dollar after an official statement that the government won't intervene in the foreign-exchange market.

* TED spreads , One of the most popular barometers for the credit crunch has fallen to July 2007 levels, as one of the bear-market triggers dissipates.

* The Bank of Japan, for the first time in nearly three years, acknowledged Friday that there are signs of improvement in the economy. "The pace of deterioration in economic conditions is likely to moderate gradually, leading to a leveling out of the economy," the central bank's board members said at the conclusion of a two-day meeting. Members, as expected, said they will also keep policy rates unchanged at 0.1%.

* The US government is readying to steer General Motors into bankruptcy with a plan to fund the ailing automaker with tens of billions of dollars in extra public financing, media reports said on Thursday.