Breaking News Alert
The New York Times
Wednesday, October 8, 2008 --
9:40 PM ET
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Treasury Department May Take Ownership Stake in
Banks
Having tried without success to unlock frozen credit
markets,
the Treasury Department is considering taking ownership
stakes
in many United States banks to try to restore
confidence in the financial
system, according to government
officials.
Treasury officials say
the just-passed $700 billion bailout
bill gives them the authority to
inject cash directly into
banks that request it. Such a move would quickly
strengthen
banks' balance sheets and, officials hope, persuade them
to
resume lending. In return, the law gives the Treasury the
right to
take ownership positions in banks, including healthy
ones.
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More:
http://www.nytimes.com/?emc=na