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.