US unveils $250bn rescue plan

Yesterday, the US government unveilled a historic rescue plan for its banks, a plan that includes $250bn. As part of the plan, the government will inject it's banks with half the total, $125b, and under a take-it-or-leave-it offer, the banks will recieve additional funds in return for non-voting preference shares for the government.
All banks will get these funds on the same terms, and the cost of securing loan guarantees will depend on the size and strength of each bank.
All other US financial institutions eligible for the plan have to decide by November 14 whether to participate on these terms.

Simon Zutterman

Source: Financial Times
http://www.ft.com/cms/s/0/395a0fa6-99f2-11dd-960e-000077b07658.html