According to the U.S. NBC TV reported on October 24, the U.S. government now is the beginning of more Bank of America to provide additional direct financial assistance. U.S. Treasury officials to the U.S. NBC TV that the U.S. Treasury Department in the next few weeks will be approved for the bank to provide more financial assistance. The official said that at the same time, the Ministry of Finance may be released within 48 hours on the injection of more than a statement. If aid was included in the list of private banks will be entitled to drive in advance of the Ministry of Finance issued their own statement.
It is reported that the U.S. Treasury Department will announce a new round of capital injection to accept the list of banks, will be about 20 banks have been included in the list of aid. In addition, two insiders familiar with the plan said that the United States is to look closely at how the Ministry of Finance through the 700,000,000,000 U.S. dollars to help rescue plan bonds and mortgage insurers out.
U.S. Treasury to buy directly from financial institutions, equity can only be adopted by the U.S. government 250,000,000,000 U.S. dollars of direct funding to support the efforts of the banking system in the second phase. In the first phase, the Ministry of Finance will be 9 major banks to provide funds 125,000,000,000 U.S. dollars. 9 This bank is considered essential for the maintenance of the U.S. banking system is crucial that the transport industry to do. The remaining 125,000,000,000 U.S. dollars will be used to buy shares of other banks. These used to rescue the banking system comes from funds approved by Congress 700,000,000,000 U.S. dollars rescue section.
9 This is the nation's largest bank last week was in fact from all the pressure in the first 125,000,000,000 U.S. dollars capital injection agreement signed. But the capital injection will help bail out these banks, these banks need capital at that time can continue to survive. The first round of capital injection and the situation is different from the U.S. Treasury is likely to insurance companies, credit default swaps and other financial instruments injection. The first round of capital injection, the U.S. Treasury Department and the Federal Reserve had made diligent efforts to persuade banks to accept their funding. To accept the second round of funding will not be such a case, because it is the United States and the Ministry of Finance took the initiative to apply for funding support.
Paulson served as financial stability of the interim head of the Office of the monitor 700,000,000,000 U.S. dollars rescue package of key Nair - Cash in Cali on Thursday that members of Congress, is expected in the coming weeks there will be more banks In need of capital injection.
U.S. Treasury Department before the Monday start from the government plans to buy equity injection of interest to banks for applications. The banks have been approved will be included in the remaining 125,000,000,000 U.S. dollars assistance from the government list. At present, however, the U.S. Treasury and are unwilling to disclose what specific banks were rejected or withdraw from.
U.S. Treasury Department also said that they have sufficient funds for all eligible banks and financial institutions injected. At the same time, the Ministry of Finance said that these are willing to accept the assistance of financial institutions must be on November 14 before they are submitted to the department in charge of the application. U.S. financial injection aimed at encouraging healthy active bank credit to their activities. Prior to that, as a result of these activities by the United States credit in the housing market slump and sub-loan crisis appears affected by the freeze, and caused a chain reaction in global credit markets to freeze.
However, in view of members of Congress are always concerned about 700,000,000,000 U.S. dollars financial aid program the actual results, the U.S. Treasury Department to carry out rescue banks for more practice will bear its members from the greater pressure. Thursday, the U.S. Senate Banking Committee hearing, members of Congress have put forward on a large-scale bank does not receive the funds made available to borrowers, but will choose the funds will be accumulated.
In response, Paulson said: "Our objective is to enhance the bank's self-confidence, but also to increase people's confidence in the bank. For this purpose, they will be used to fund these loans, rather than for storage. We hope that They can do. As a result, the increase in confidence will promote the activities of the credit active. " As a first step in the measure, the U.S. Treasury Department has purchased PNC Financial Services Group of 7,700,000,000 U.S. dollars of preferred stock. Since the PNC Financial Services Group has agreed to the government with the support of 5,600,000,000 U.S. dollars to the price of acquisitions in the United States National City Bank of Ohio, and the resulting savings to set up the nation's fifth largest number of new banks. The capital injection will help PNC Financial Services Group to maintain a good Tier 1 capital ratio.
The transaction is now in the United States government officials earlier this week hinted that the U.S. government will approve the use of bank 250,000,000,000 U.S. dollars of the Ministry of Finance to save the city money in part to the capital after the acquisition of small and weak competitors in the first trading post. National City Bank will also be following the Bear Stearns, Merrill Lynch, the U.S. savings bank Sovereign Bancorp Inc, Wachovia and Washington Mutual Bank, which are going to be a better financial situation of the other company's acquisition of Bank One.