U.S. to Buy Stakes in Banks to Help Free Credit

Source: New York Times

The Treasury secretary Henry M. Paulson Jr. said Friday that the government would move ahead with a plan to take stakes in financial institutions as it tries to restore confidence in the financial system.

Mr. Paulson’s comments came shortly after the finance heads of the world’s major economies promised to work together to ease the global financial crisis that had roiled the markets for the last week.

“We are developing strategies to use the authority to purchase and insure mortgage assets and to purchase equity in financial institutions, as deemed necessary to promote financial market stability,” Mr. Paulson said in a news conference.

The administration had floated the idea of taking the bank stakes earlier this week after having tried without success to unlock frozen credit markets. The hopes is that taking ownership stakes in many United States banks would help restore confidence in the financial system.


Read more: http://www.nytimes.com/2008/10/11/business/11markets.html?hp

hell he will steal the money out of the banks to ,and leave a iou

financial tsunami ?

Restoring confidence... you're giving them a placebo when they need a vicodin.