14 DAY TRIAL // Microsoft is starting to increasingly feel the heat emanating from the collapsing American financial sector and, in this context, the Redmond company has emerged as a supporter of the $700 billion bailout plan put together by the U.S. Government. The software giant took a hit following the rejection of the financial bailout package by the U.S. House of Representatives on September 29. With stocks dropping over 8% in a single day as the Dow Jones Industrial Average closed down 777.68 points on Monday, Brad Smith, Senior Vice President and General Counsel for Microsoft, indicated that the company is voting “yes” on the $700 billion handout.
“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. 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 the Congress to act swiftly,” Smith stated.
According to Smith, this is the first time in its existence when Microsoft is throwing its weight behind a piece of banking legislation. However, Microsoft's Sr. VP and General Counsel indicated that the company's involvement, albeit unusual, was catalyzed by the crisis in the U.S. financial sector, according to SeattlePI, a context which impacts the Redmond giant directly. In addition to sending an email to the members of Washington state's congressional delegation, Microsoft is also trying to rally additional businesses in the Seattle area in pressuring the Congress to intervene in order to stabilize the U.S. economy.
The House of Representatives' failure to pass a bailout plan for the financial sector caused Microsoft to slip no less than 8.7 percent. The Redmond giant's shares closed at $25.01 having lost $2.39, as the Dow industrials plunged to a record low point drop.