The Bush administration is planning to greatly expand protections for the U.S. banking system out of deep concern about the faltering economy.
That's according to an industry official who is knowledgeable about a Treasury Department meeting with banking executives Monday.
The official says the administration will use perhaps as much as $250 billion of the $700 billion bailout program to purchase stock in U.S. banks. The intent is to provide the banks with desperately needed money. In addition, the Federal Deposit Insurance Corporation will temporarily provide insurance for loans between banks, charging the banks a premium for doing so. The official says the FDIC is also considering temporarily removing the current $250,000 limit on FDIC insurance on bank deposits.
President Bush is expected to announce the expansion Tuesday morning.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
KKTV firmly believes in freedom of speech for all and we are happy to provide this forum for the community to share opinions and facts. We ask that commenters keep it clean, keep it truthful, stay on topic and be responsible. Comments left here do not necessarily represent the viewpoint of KKTV 11 News.
If you believe that any of the comments on our site are inappropriate or offensive, please tell us by clicking “Report Abuse” and answering the questions that follow. We will review any reported comments promptly.powered by Disqus
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or email@example.com.