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Bush announces second rescue package for banks
North America News.Net
Tuesday 14th October, 2008 (IANS)
US President George W. Bush announced Tuesday government plans to pump $250 billion in the American banking sector, following similar action announced by several European governments the day before.
The goal is to revive the financial sector and restore the economy back on the road to growth, Bush said in a brief televised statement in Washington.
The purchase of shares and stakes in banking institutes would be 'short-term measure' towards stabilising the markets, Bush said. The banks can then later repurchase their stakes from the state.
But Bush cautioned that it would take some time until all the state measures towards stabilising the financial sector and economy would have their full effect.
According to US media reports, the government buy-in would include nine of the largest financial concerns including Citigroup, Bank of America and JP Morgan Chase. The broadcaster CNBC said that the state might potentially buy in to thousands of banks.
Bush's announcement follows the concerted actions announced by several European governments Monday for massive financial infusions to shore up the financial sector.
In the aftermath, stock markets around the world rallied with huge gains Monday, with the rises continuing Tuesday.
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