Tweaked Bailout Bill Opens Aid to Foreign Banks

Revision is first change sparked by Treasury-Congress talks
By Matt Cantor,  Newser User
Posted Sep 21, 2008 11:15 AM CDT
The sign on a branch of Barclays Bank in London is shown Wednesday, Sept. 17, 2008.    (AP Photo/Kirsty Wigglesworth)
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(Newser) – The Treasury Department has amended its bailout bill to include foreign banks, Politico reports, abandoning an earlier requirement that banks be headquartered in the US to receive money. Now, the banks must have “significant operations in the US” or be approved by Henry Paulson—meaning Barclays, Credit Suisse, and others are eligible.

Excluding banks that are deeply involved in US lending wouldn’t be smart in a fight to avert a liquidity crisis, said a source involved. The change is the first to be announced as the Treasury and legislators review the bill, which could head to the House on Thursday and is expected to quickly pass both chambers of Congress.