White House Says Govt. May Buy Into Private Banks

Law360, New York (October 9, 2008, 12:00 AM EDT) -- As part of a sweeping economic bailout plan signed by President Bush on Friday, the federal government is “actively considering” taking equity stakes in major U.S. banks, White House spokeswoman Dana Perino said Thursday.

The possibility of the government buying into the private banking system was included in the rescue package that the president supported, and it gave U.S. Treasury Secretary Henry Paulson a range of possibilities.

“Investing in banks directly was one of those authorities," Perino said at a White House briefing on Thursday....
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