TARP details emerge


Looks like the big-name banks will have no choice: They were told by Treasury Secretary Henry Paulson they will have to accept a government investment (via TARP) for the good of the country. The New York Times reports Citigroup and JPMorgan Chase will get $25 billion each; Bank of America and Wells Fargo, $20 billion each (plus an additional $5 billion for their recent acquisitions); Goldman Sachs and Morgan Stanley, $10 billion each, with Bank of New York Mellon and State Street each receiving $2 to 3 billion. No word yet on small banks, which are slated for capital injections. The nearest precedent for such a plan is the Reconstruction Finance Corporation in the 1930s, the Times notes. The agency, set up 1932, bought stock in 6,000 banks at a total cost of $1.3 billion.

For more:
- here's the Times article on the liquidity injection
- here's a Times article on historical perspective

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