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The US administration will spend 250 billion dollars on US banks shares

de Radu Rizea
Marţi, 14 octombrie 2008, 11:59 English | Business

The American administration is willing to spend up to 250 billion dollars in acquiring shares at private banks, in order to expand the banking system protection measures, Washington officials declared, quoted by ABC.

The decision was taken on Monday evening, during a meeting between governmental economy experts and managers of American banks, hosted by the US Treasury Department and attended to by Ben Bernanke.

The sum is part of the 700 billion action plan. The Government will start by acquiring stock at nine banks - including Citigroup Inc., Wells Fargo&Co., JPMorgan Chase&Co, Bank of America Corp. and Morgan Stanley, but the program will be expanded to other financial institutions as well. Federal Deposit Insurance Corp will ensure the interbank loans.

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