Added: Dec 4, 2008

From: employmentcrossing

Duration: 4:3

www.EmploymentCrossing.com Treasury Secretary Henry Paulson urged that banks receiving $250 billion of taxpayer funds to channel the money to customers quickly. He hopes to halt a credit freeze that's threatening to bankrupt companies and severely impact the job market. Leaving businesses and consumers without access to financing is totally unacceptable,'' Paulson said. He rolled out the emergency program after a crisis of confidence in the financial system last week spurred the biggest stock sell-off since 1933. These are healthy institutions, and they have taken this step for the good of the U.S. economy,'' Paulson said. These institutions, along with thousands of others to come, will have enhanced capacity to perform their vital function of lending. The Treasury chief was forced to change tack from an initial plan to buy distressed assets from banks after the financial panic caused banks to hoard cash and send money market rates to record levels. In its biggest effort yet to halt the 14-month credit rout, officials will also offer guarantees on new bank debts and start purchasing commercial paper. The Treasury's stock buying program will begin with nine banks. According to Bloomberg, $125 billion will be disbursed in the next few days. Citigroup, Wells Fargo, JPMorgan Chase and Bank of America/Merrill Lynch will each get $25 billion. Morgan Stanley and Goldman Sachs will get $10 billion in free taxpayer money. Bank of New York Mellon will receive about $3 billion and State Street is getting $2 billion.

Channel: News

Tags: america  and  bank  banks  chase  citigroup  fargo  goldman  jpmorgan  lynch  merrill  morgan  of  paulson  sachs  secretary  stanley  treasury  wells 

Rating: 5.00 (2 ratings)    Views: 217' favoriteCount='2    Comments: 3

VivaMydick Says:

Dec 4, 2008 - embrace communism , nice :)

Zottl1234 Says:

Dec 4, 2008 - If you watch this you should see that the money goes to a hand full of banks, NOT to "Thousands of Banks" as described in the titel!This is a friend bailout.And the money will never reach the people in the streets.

spryspy7 Says:

Dec 4, 2008 - yes see derrenweeks websitethis is what they want