Bush follows the british with a £143 billion bail-out
Posted: Wed Oct 15, 2008 2:16 am
THE DAILY MAIL WEDNESDAY OCTOBER 15TH
BUSH FOLLOWS THE BRITISH WITH A £143 BILLION BAIL-OUT
"America followed in Britain's footsteps yesterday by announcing the partial nationalisation of it's leading banks.
US Treasury Secretary Hank Paulson said he would plough $250 billion into the country's biggest financial players in an attempt to safeguard the world's leading economy from total collapse.
The ex- banker described the extraordinary state intervention as 'objectional' but necessary. Nine U.S. banks have signed up so far to a sheme that will see the White House buy preference shares in them.
Bank of America, Citigroup, JP Morgan Chase and Wells fargo are each expected to get $25 billion. Goldman Sachs and Morgan Stanley are expected to be handed $10 billion.
The decision represents a humiliation for the Wall Street titans-among them Mr Paulson's former firm Goldman Sachs, where he earned a fortune.
But the White House has been forced to re-write it's rescue after it became clear that it's original $700 billion bail-out did not go far enough.
It now echo's the £500 billion scheme launched by Gordon Brown the Prime Minister of Great Britain, to prevent the financial markets from entering total meltdown by directly injecting cash into banks in return for shares.
This should shore up lender's capital cushions and help insulate them against the deepening economic downturn.
It will also hopefully encourage them to lend to each other, helping credit pour back into the wider economy.
Yesterday Mr Brown found himself having to play down his role in the bank rescue when confronted by claims that he is a global 'superhero'.
Downing Street has been taken back by the International Praise which has seen the Prime Minister hailed by Nobel prize winner Paul Krugman for his 'clarity and decisiveness' and described as a magician by the French."
BUSH FOLLOWS THE BRITISH WITH A £143 BILLION BAIL-OUT
"America followed in Britain's footsteps yesterday by announcing the partial nationalisation of it's leading banks.
US Treasury Secretary Hank Paulson said he would plough $250 billion into the country's biggest financial players in an attempt to safeguard the world's leading economy from total collapse.
The ex- banker described the extraordinary state intervention as 'objectional' but necessary. Nine U.S. banks have signed up so far to a sheme that will see the White House buy preference shares in them.
Bank of America, Citigroup, JP Morgan Chase and Wells fargo are each expected to get $25 billion. Goldman Sachs and Morgan Stanley are expected to be handed $10 billion.
The decision represents a humiliation for the Wall Street titans-among them Mr Paulson's former firm Goldman Sachs, where he earned a fortune.
But the White House has been forced to re-write it's rescue after it became clear that it's original $700 billion bail-out did not go far enough.
It now echo's the £500 billion scheme launched by Gordon Brown the Prime Minister of Great Britain, to prevent the financial markets from entering total meltdown by directly injecting cash into banks in return for shares.
This should shore up lender's capital cushions and help insulate them against the deepening economic downturn.
It will also hopefully encourage them to lend to each other, helping credit pour back into the wider economy.
Yesterday Mr Brown found himself having to play down his role in the bank rescue when confronted by claims that he is a global 'superhero'.
Downing Street has been taken back by the International Praise which has seen the Prime Minister hailed by Nobel prize winner Paul Krugman for his 'clarity and decisiveness' and described as a magician by the French."