Treasury Describes Details Of Capital Purchase Plan

Law360, New York (October 21, 2008, 12:00 AM EDT) -- The U.S. Treasury Department has released new details on how banks can participate in its capital purchase program, revealing Monday a streamlined application process and a firm deadline.

Under the program aimed at encouraging banks to increase lending, the Treasury will make $250 billion available to U.S. financial institutions in the form of preferred stock.

The Treasury has already said it will provide $125 billion in equity to nine of the largest financial institutions, including Goldman Sachs Group Inc., Citigroup Inc., JPMorgan Chase & Co. and...
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