Feds to give banks $250B to resume lending

Federal Treasury Secretary Henry Paulson said that injecting $250 billion
into the nation’s banks was needed to restore confidence and avoid a financial
collapse. Paulson said the Treasury would make
the funds available to banks to help recapitalize and get them lending
again. The Dow Jones industrial average gained 936 points, or 11 percent,
yesterday, and European markets rose 10 percent after this was announced. The government also plans to
guarantee new debt issued by banks for three years to encourage the banks to
resume lending.