----- Original Message ----- From: "Forbes.com Alerts" <[EMAIL PROTECTED]> To: "Alerts Recipients" <[EMAIL PROTECTED]> Sent: Tuesday, October 14, 2008 10:55 PM Subject: Government To The Rescue
> Government To The Rescue > > Fed Reserve Chairman Bernanke and Treasury Secretary Paulson detail their > plan to flow $250B into banks. > > Click the link below to read the full story: > http://www.forbes.com/2008/10/14/financial-rescue-banking-markets-econ-cx_cg_1014markets14.html?partner=alerts > The U.S. government's economic heavyweights came out Tuesday morning touting their plan to save the U.S. financial system. Henry Paulson, the U.S. Treasury secretary, spoke first, insisting credit flow must continue. The Treasury Department released its equity purchase plan, which said the department will allot $250.0 billion in preferred shares to banks of all degrees of economic health. Paulson said the banks would deploy the capital, not hoard it. (See "The Ownership Society.") Nine banks have already agreed to take the injection, including Bank of America (nyse: BAC - news - people ), Citigroup (nyse: C - news - people ), Wells Fargo (nyse: WFC - news - people ), JPMorgan Chase (nyse: JPM - news - people ), Morgan Stanley (nyse: MS - news - people ) and Goldman Sachs (nyse: GS - news - people ). On the news, Bank of America and Citigroup gained 16.5% and 16.6%, respectively; Goldman Sachs jumped 14.1%; Morgan Stanley added 29.2%; and JPMorgan rose 1.3%. Although Paulson expressed his displeasure with these measures--namely the degree of intervention the government is taking--he said the alternative was unacceptable. He also promised to ban golden parachutes for executives. The major equity indexes surged in early-morning trading. The yield on the 10-year U.S. Treasury note jumped to 4.00%, from 3.86%, at Friday's close. For his part, U.S. Federal Reserve chairman Ben Bernanke said the central bank's strategy will continue to evolve and be refined. He added that the central bank was pressing forward with its commercial paper plan, and would keep it up until the markets improved. In addition, Bernanke said the new initiative by the Federal Deposit Insurance Corporation will reinvigorate interbank lending and the Federal Reserve will continue to work with other central banks. > > > > This e-mail is sent to you because you selected to receive Forbes.com > News Alerts. To unsubscribe from alerts, please reply to this e-mail > with UNSUBSCRIBE in the subject field. > > If you have questions or need help, please contact Forbes.com customer > service at [EMAIL PROTECTED] or send your request in the mail > directly to: > > > Forbes.com LLC. > Attn: Customer Service > 90 5th Avenue > New York, NY 10011 > > > Click the link below to review our privacy policy: > http://www.forbes.com/fdc/privacy.shtml > > > Copyright Forbes.com LLC. >
