Money Talks | 25.09.2008 | 00:30
US Treasury Announces Rescue Fund for Banks
US Secretary of the Treasury has announced the formation of a $700 billion rescue fund to pull future failing banks out of the red.
US Secretary of the Treasury Henry Paulson announced this week the foundation of a $700 billion rescue fund. The plan would give the Treasury Department the power to buy bad mortgage debts from troubled financial institutions to head off a disastrous credit freeze that could paralyze the international finance system. The fund still has to be approved by Congress, though President George W. Bush and Speaker of the House Nancy Pelosi are both confident the measure will pass with no problems.
This news came in conjunction with the announcement that the last two major Wall Street investment banks, Goldman Sachs and Morgan Stanley, are going to become bank holding companies, allowing them to open savings and loan branches. Money Talks spoke to Manfred Jaeger from the Cologne Institute for Economic Research about the rescue fund the changes on Wall Street.
Interview: Mark Mattox / Manfred Jaeger
