US Will Buy Shares in American Banks

Journal says Treasury's tally hides damage

(NEWSER) - Banks that received taxpayer aid to restart lending are loaning less than they did before the bailout, a Wall Street Journal analysis finds. The most recent figures available, from February, show a 23% drop in new loans from the lending level in October, when the Treasury Department kicked off TARP, the Journal notes. The figures are a more alarming and possibly more accurate measure than those the Treasury uses. More»

After seeing some thawing in key credit markets, Treasury may expand program

(NEWSER) - Treasury is considering using some of the $700 billion at its disposal to buy stakes in a range of financial companies beyond banks, the Wall Street Journal reports. The idea comes after seeing measured success in thawing credit markets by taking equity stakes in several banks. Treasury may also abandon its plan to buy troubled assets from banks at auction, instead purchasing those directly. More»

$250B bailout needed to restore faith, keep capital at home

(NEWSER) - The $250 billion plan to guarantee new bank debt and unlimited bank deposits in certain accounts isn’t just an option, Treasury Secretary Paulson told the chiefs of nine banks yesterday; it’s for the good of the country. The plan, the country’s response to similar European banking actions, is engineered to quash feats that US banks will default and keep capital from flowing overseas to safer banks, the New York Times reports. More»

(NEWSER) - The finance ministers of the world's economic leaders vowed to stem the financial bleeding in international markets today after stocks plummeted yet again, Reuters reports. Reacting to pleas from investors, the IMF, and several other countries, the G7 reps pledged "urgent and exceptional action" to free up credit and money markets. Meanwhile, Washington confirmed that it will use bailout money to purchase stakes in US banks, the Washington Post reports. More»

Demands and attitude have soured a once promising relationship between the administration and lawamakers

(NEWSER) - Treasury Secretary Henry Paulson may have gotten what he wanted from Congress on the Wall Street bailout, but his performance in selling the deal left lawmakers with a sour taste, the Wall Street Journal reports. Many think his original proposal, which would have granted him virtually unlimited powers, and his conduct in the hot seat, were presumptuous. But no matter: “For a few months, he will be more powerful than the president,” said Sen. Richard Shelby, a bailout critic. More»