U.S. Eyes Bank Equity Stakes

10-10-2008

The U.S. moved closer to taking equity stakes in banks on Thursday ahead of a G7 meeting of economic powers trying to stave off world financial ruin, reports Reuters.

The Treasury Department plans to start directly injecting capital in U.S. banks as soon as the end of October, according to a financial policy source familiar with Treasury Secretary Henry Paulson's thinking.

It would be the latest step to combat the widening financial crisis in which major economies have rescued banks, injected massive amounts of liquidity into markets, agreed to take toxic debt off the books of financial institutions and slashed interest rates.

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