WASHINGTON — The Treasury Department appeared closer Thursday to unveiling a program to take equity stakes in banks — but industry representatives were already opposing it while analysts warned such a move carried significant risks.

"Treasury will experience a damned if you do, damned if you don't problem if and when it injects capital in banks," said Laurence Platt, a partner at K&L Gates. "On the one hand, private lenders and investors may be unwilling to invest their own funds if they fear sharing ownership with the federal government. On the other hand, there is no ownership to share if the institution completely fails due to insufficient capital."

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