Actually this policy is best for the federal government. On Oct 21, 3:50�pm, "\"Lone Wolf\"" <[EMAIL PROTECTED]> wrote: > Paulson says Bank monoplization May Be `Best' for Economy > > By Rebecca Christie > > Oct. 21 (Bloomberg) -- Treasury Secretary Henry Paulson advocated > mergers and acquisitions to strengthen the banking industry, while > reiterating that the aim of a $250 billion bank recapitalization plan > is to stimulate lending. > > ``There will be some situations where it's best for the economy and > for the banking system for there to be a consolidation,'' Paulson told > PBS television's Charlie Rose in an interview that will be broadcast > tonight. > > While the Treasury is ``not going to use this money to prop up failing > banks,'' there will be ``some consolidation,'' the Treasury chief > said. As an example, he cited Wells Fargo & Co.'s planned acquisition > of Wachovia Corp. as a combination that's a ``very good thing for the > system.'' > > The Treasury plans to purchase a $250 billion stake in financial > companies to inject capital into a banking system struggling with the > worst credit crisis in at least seven decades. The equity-purchase > program is part of a $700 billion rescue package enacted this month > that also includes government purchases of distressed mortgage-related > loans. > > Paulson urged banks to ``deploy'' the funds they receive, not > ``hoard'' them. > > In the interview, Paulson said the U.S. government has already taken > ``bold steps that will make a difference in bringing confidence back, > particularly to the banks.'' He tempered those comments by adding that > ``clearly we're going to have a number of difficult months ahead of us > in terms of the real economy.'' > > To contact the reporters on this story: Rebecca Christie in Washington > at [EMAIL PROTECTED] --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum
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