President Bush announced today that the federal government is going to invest $250 billion of monies recently authorized by Congress as part of a financial bailout plan to buy equity stakes in some of the nation’s leading banks. It will be the biggest bank investment ever made using taxpayer dollars.
So far nine of the nation’s largest backs have agreed to take the funds in return for giving the government preferred shares. Banks have also agreed to place limits on executive pay.
The latest move is part of an ongoing attempt to relieve the nation’s financial crisis. It is hoped the monies provided to banks will be used to free up lending.
Source: http://www.npr.org/templates/story/story.php?storyId=95691838
Tags: Economy
