Thursday, October 09, 2008

Reuters: Treasury may recapitalize banks this month

by Calculated Risk on 10/09/2008 01:02:00 PM

From Reuters: Treasury may capitalize banks by end October: source

The U.S. Treasury Department plans to start directly injecting capital in U.S. banks as soon as the end of October in exchange for passive investment stakes according to a financial policy source familiar with Treasury Secretary Henry Paulson's thinking.
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White House spokeswoman Dana Perino said later on Thursday that Paulson is "actively considering" capital injections into troubled U.S. banks.
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The source familiar with Paulson's thinking said Treasury was working "extremely fast" to put together a capital injection plan ... the injections would likely be made public ...
Here we go ...

Also Roubini explains: How authorization to recapitalize banks via public capital injections (“partial nationalization”) was introduced - indirectly through the back door - into the TARP legislation