Monday, Oct 27, 2008
Nine major US banks will receive 125 billion dollars in capital injections this week from the US government, a Treasury official said Monday.
Assistant Treasury Secretary David Nason told CNBC television that “We executed the agreements for the nine institutions late last night so the money will go out the door for these institutions early this week.”
The nine will get half of the 250 billion dollars to be invested by the government in the banks as part of a massive rescue of the financial system.
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The nine banks are Citigroup, JPMorgan Chase, Bank of America, Goldman Sachs, Morgan Stanley, Wells Fargo, Bank of New York Mellon, State Street and Merrill Lynch, soon to be taken over by Bank of America.
The remaining 125 billion dollars will go to smaller banks and lenders which agree to the capital for equity program, which includes mandated limits on executive compensation.