U.S. Summons Banks to Meeting on Rescue Plan
The Treasury and Fed are meeting with "leading financial market participants."
— -- WASHINGTON (AP) -- The Bush administration summoned executives from leading financial firms to a meeting Monday 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 officials from the Treasury Department and the Federal Reserve would participate in the meeting at the Treasury Department. The discussions are aimed at finalizing details on a financial market stability plan.
The administration's plan to implement the rescue package Congress passed on Oct. 3 could include the government taking partial ownership in banks and purchasing bad debt from financial companies.
President Bush said the plan will help banks gain access to capital and unfreeze credit markets.
"These are tough times for our economies yet we can be confident that we can work our way through these challenges and America will continue to work closely with the other nations to coordinate our response to this global financial crisis," Bush said following a meeting with Italian Premier Silvio Berlusconi.
The discussions in Washington came as Europe took swift, unified action to thaw frozen lending and get the global economy moving again.
Stock markets around the world rose. The Dow Jones industrials gained more than 500 points in a rebound from days of staggering losses. European markets rallied following Asia's lead in response to the widespread government initiatives.
The administration's interim bailout package chief, Neel Kashkari, said the government is moving quickly to implement the rescue program, including consulting with private law firms on how to buy stakes in banks to boost their cash reserves.
He spoke as The Bank of England, the European Central Bank and the Swiss National Bank jointly announced they would work together to provide unlimited short-term funds to make money available to ease the credit freeze. The Bank of Japan said it was considering a similar move.
To assist the European banks, the Fed said it was taking actions to assure enough U.S. dollar funds were available to meet demand.
