The US treasury secretary, Henry Paulson, has signalled that the government could invest in banks as it tries to contain the deepening global crisis, as Asian central banks joined in the unprecedented coordinated global rate cut, report The Guardian .
Following the concerted interest rate cuts announced yesterday by several central banks, it appears that the US treasury is now considering taking stakes in many US banks. The news comes after Britain announced a £500bn bank rescue package, including £50bn to buy stakes in its major banks. At a news conference in Washington, Paulson said that the federal government would use "all resources at its disposal to make our financial system stronger". "We will use all of the tools we've been given to maximum effectiveness, including strengthening the capitalisation of financial institutions ...
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