U.S. planning to buy equity in financial institutions
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any equity the government purchases ...would be on a non voting basis...
Get the presses rolling, time to see the other side of volatility.
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http://www.reuters.com/article/topNews/idUSTRE49994420081010
WASHINGTON (Reuters) - U.S. Treasury Secretary Henry Paulson said on Friday the United States is developing plans to buy equity in financial institutions if necessary to halt market turmoil.
"We are working to develop a standardized program that is open to a broad array of financial institutions," he said in a statement after a meeting of top economic officials of the Group of Seven major industrialized nations.
Paulson said the program, which would use authorities created by a broad financial rescue package passed last week by Congress, would be designed to encourage the raising of new private capital to complement the public capital injections.
"Consistent with the legislation, any equity the government purchases through a broadly available equity program would be on a non-voting basis, except with respect to the market-standard terms to protect our rights as investors," Paulson said.
(Reporting by Mark Felsenthal and David Lawder, Editing by Chizu Nomiyama)
--------------------------------------------
any equity the government purchases ...would be on a non voting basis...
Get the presses rolling, time to see the other side of volatility.
______________________________
http://www.reuters.com/article/topNews/idUSTRE49994420081010
WASHINGTON (Reuters) - U.S. Treasury Secretary Henry Paulson said on Friday the United States is developing plans to buy equity in financial institutions if necessary to halt market turmoil.
"We are working to develop a standardized program that is open to a broad array of financial institutions," he said in a statement after a meeting of top economic officials of the Group of Seven major industrialized nations.
Paulson said the program, which would use authorities created by a broad financial rescue package passed last week by Congress, would be designed to encourage the raising of new private capital to complement the public capital injections.
"Consistent with the legislation, any equity the government purchases through a broadly available equity program would be on a non-voting basis, except with respect to the market-standard terms to protect our rights as investors," Paulson said.
(Reporting by Mark Felsenthal and David Lawder, Editing by Chizu Nomiyama)