Treasury invests in several regional banks
The Department of the Treasury has begun to purchase stakes in several regional banks as the government aims to halt the freeze of the credit markets,
The Department of the Treasury has begun to purchase stakes in several regional banks as the government aims to halt the freeze of the credit markets, according to a Bloomberg report.
The report, which cited a person who was briefed on the matter, said that the Treasury Department may announce the plan as soon as today.
The plan would be the second round of a $250 billion plan to inject equity into the financial system.
A call to the Treasury Department wasn’t immediately returned.
An initial $125 billion was allocated to nine of the largest banks including Bank of New York Mellon Corp., Citigroup Inc., The Goldman Sachs Group Inc., JPMorgan Chase & Co., Merrill Lynch & Co. Inc. and Morgan Stanley, all of New York; Bank of America Corp. of Charlotte, N.C., State Street Corp. of Boston and Wells Fargo & Co. of San Francisco.
The funds come from the government’s $700 billion bailout plan, which was passed Oct. 3, and follows moves by European governments to make equity investments in banks.
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