Bailout plan
The US treasury will borrow $700bn from the international money markets by selling bonds to foreign countries.
The treasury will then use the money to buy back mortgage backed-securities from US banks and institutions.
It can use only $250bn immediately, although it does have access to another $100bn if required.
Access the final $350bn is subject to congressional approval.
The treasury can also use that money to save those banks on the verge of collapsing – although it would be entitled to a majority stake in the bank.
If the government takes on a debt and it's still making a loss after five years – the bank will have to pay compensation.
There plan also includes tighter controls over large payments to bank executives.
source: Aljazeera.net/English
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