WASHINGTON — President Bush was expected to announce a new initiative Tuesday morning designed to stabilize the financial markets.
Mr. Bush will join Treasury Secretary Henry Paulson, Federal Reserve Board Chairman Ben Bernanke, and Federal Deposit Insurance Corp. Chairman Sheila Bair for a brief statement at 8:30 a.m. Comptroller of the Currency John Dugan, Office of Thrift Supervision Director John Reich, and other members of the President's Working Group on Financial Markets are also expected to attend.
The Wall Street Journal reported Monday that the Bush administration will announce it is taking equity stakes in nine of the nation's largest banks. The paper said banks receiving government funds include Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc., Wells Fargo & Co., Goldman Sachs Group, Morgan Stanley, and Bank of New York Mellon.
Additionally, the FDIC is expected to announce it is extending its guarantee of bank deposits to include certain new funds raised by banks and thrifts for three years, the paper said.