Today President Bush announced a change to the $700 billion plan to help financial firms. The government’s new plan includes investing $250 million of taxpayer’s money into private banks.
According to a USA Today article, executives of the country’s biggest banks met Monday at the Treasury Department to discuss this new plan. Treasury Secretary Henry Paulson told these bank CEOs they had to accept the government stock purchases to help make the US economy better.
President Bush claims the role of the government is limited and temporary. These stock purchases will quickly give banks cash to fill in the holes created by the financial crisis and encourage banks to lend to each other and to businesses and consumers. Some of the Banks in line for government investment: Citigroup, Wells Fargo, JPMorgan Chase, Bank of America, Morgan Stanley, State Street, Merrill Lynch, Bank of New York Mellon and Goldman Sachs.
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