Treasury Weighs Investing In Banks

Washington Post (10/10/08) P. D1; Cho, David; Appelbaum, Binyamin; Montgomery, Lori
Hoping to boost confidence in the country's troubled financial system, the White House reportedly is putting the finishing touches on a plan that would allow the U.S. government to inject cash into banks in return for ownership interests. Under the $700 billion economic stabilization package that was passed by Capitol Hill lawmakers and signed into law by President Bush a week ago, senior Treasury officials believe they have the authority to take such stakes in banks. However, the Bush administration still has to work out a number of key issues--including when the plan would take effect and how many banks should be included. The Treasury Department will likely announce the plan by the end of October, if not sooner.