Federal Officials Meet Monday to Start Using the Bailout Plan
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AP
Published: October 13, 2008
WASHINGTON (AP) - Officials from the Treasury Department and the Federal Reserve are scheduled to meet Monday with top
executives from financial firms to work out details of the $700 billion plan aimed at thawing frozen bank lending that is stifling the economy.
Treasury Department spokeswoman Brookly McLaughlin said the meeting would take place at the White House. She said the talks were aimed at finalizing details on the financial market stability plan.
The plan could include the government taking partial ownership in banks and purchasing bad debt from financial companies. McLaughlin said leading financial market participants would participate in the discussions with Treasury and Fed officials.
Meanwhile, European governments say they are putting nearly $2 trillion on the line to protect the continent’s banks through guarantees and other emergency measures. Pledges by Britain, Germany, France, Spain, Austria and Portugal in recent days have reached a total of $1.96 trillion. The sums are
considered a maximum, and might not all be spent if the financial crisis eases.
Many of the pledges came today, a day after the 15 nations that use the euro currency agreed on an unprecedented bank rescue plan. Europe’s most unified response yet to the financial crisis dwarfs the the Bush administration’s $700 billion rescue program.
The plan is helping calm markets after they dived last week.
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