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Monday, October 27, 2008

Feds To Bail Out 2 Dozen Banks

OCt 27, 2008
Sources said Monday October 27, 2008 that FED’s regulators have decided to help a dozen banks with capital from the government. But the companies' names were not released in order to avoid creating winners and losers in the financial market , for the latter could have faced negative sentiments from customers, counterparties and investors.

The bailout was evidenced by PNC receiving $7.7 billion in federal funds, which allowed the company to buy ailing National City Bank. Alabama-based Regions Financial said earlier this week that the government had accepted its application to be part of the program.

An initial $125 billion was allocated to nine of the largest US banks, including Citigroup, JP Morgan Chase and Bank of America.


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