The White House has drawn up a bailout plan of an unprecedented scale for the troubled US financial sector.
The Wall Street Journal and other US media reported on Saturday, that the Bush administration plans to spend 700 billion taxpayer dollars over the next 2 years, to buy up bad assets from financial institutions. The plan also includes the creation of a new government entity for this purpose.
The administration has entered in negotiations with Congress over this scheme.
The planned infusion is aimed at bringing the ongoing financial turmoil under control by taking non-performing mortgage-related assets off the balance sheets of the financial institutions. The value of such assets has plummeted following the collapse of the housing bubble. The White House is hoping to win passage of related bills before Congress enters a recess on Friday, ahead of the November 4th presidential election.
If realized, the bailout would be the largest of its kind since the Great Depression.
2008/09/21 10:40
(From NHK)
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