Capital Is Doing Just Fine with Regard to Banks
October 12, 2008
White House Overhauling Rescue Plan
By EDMUND L. ANDREWS and MARK LANDLER
WASHINGTON — As international leaders gathered here on Saturday to grapple with the global financial crisis, the Bush administration embarked on an overhaul of its own strategy for rescuing the foundering financial system.
Two weeks after persuading Congress to let it spend $700 billion to buy distressed securities tied to mortgages, the Bush administration has put that idea aside in favor of a new approach that would have the government inject capital directly into the nation’s banks — in effect, partially nationalizing the industry.
As recently as Sept. 23, senior officials had publicly derided proposals by Democrats to have the government take ownership stakes in banks.
Actually, over 9,000 independent small banks nationwide are doing quite nicely, have lost no money, haven't much at risk and are benefitin…