WASHINGTON — The Bush administration announced today it will buy $250 billion worth of shares in the nation's leading bank companies.
The program, designed to improve the flow of capital, also includes insuring all deposits in non-interest bearing bank accounts through 2009. Credit unions are not mentioned in the Treasury Department fact sheet on the program. NCUA officials could not be reached for comment.
Under the plan, the government will buy preferred equity stake in seven large banks with the option to buy shares in other banks in the future. Banks that participate agree to limits on executive compensation and strengthen their efforts to help consumers avoid foreclosure.
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