Plan to Restore Investor Confidence

Tuesday the US government announced a $250 billion plan to help banks repair their balance sheets and restore confidence in markets. The government will inject capital directly into the banking system by purchasing preferred stock and warrants to purchase significant stakes across a number of banks. All of which should help stiumlate the interbank forex market The move is expected to bolster the US dollar providing Forex opportunities to investors.

Half of Funds Will Go to 9 Major Banks

Half of the $250 billion will go to nine banks, JPMorgan Chase, Citigroup, Goldman Sachs Group, Morgan Stanley, Bank of America Corp, Merrill Lynch & Co, Wells Fargo & Co, Bank of New York Mellon, and State Street Corp. Treasury Secretary Paulson pushed the top tier banks to participate so there would be no stigma for other banks associated with the plan.

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