Tuesday, October 14, 2008


Treasury Bank Plan Said to Include Equity, Bank Debt Insurance

Oct. 13 (Bloomberg) -- The U.S. Treasury has settled on a
broad plan for rescuing frozen credit markets that includes
taking equity stakes in financial institutions and insuring new
senior bank debt for three years, according to a person briefed
on the proposal.

The government may spend as much as $250 billion on buying
non-voting shares of banks and other financial companies, the
person said. Treasury Secretary Henry Paulson may unveil the
effort as early as Wednesday.


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