Bush set to reveal expanded plan to rescue banks
Last Updated: Tuesday, October 14, 2008 | 6:39 AM ET
CBC News
U.S. President George W. Bush was expected to announce on Tuesday details of an expanded plan to bail out the country's banks.
The announcement was scheduled a day after a meeting between U.S. banking executives and federal officials on revamping the economic bailout plan.
Industry executives said the Bush administration could use as much as $250 billion of the $700 billion US bailout program passed recently by the U.S. Congress to buy stock in American banks to provide the financial institutions with much needed money.
Executives said the government could buy stock of nine large banks in the U.S. but the program could be expanded to include many others.
The administration could also take steps to encourage bank-to-bank lending, which has decreased sharply in recent days amid fears of repayment because of billions in bank losses.
Bush was scheduled to speak in the Rose Garden on Tuesday morning.
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