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G7 announce global action, US govt to buy stakes in banks
Saturday, 11 October, 2008
A trader watches the Japanese stock market. (AAP)
Seven of the world's major industrial powers have pledged to take decisive action and use all available tools to prevent a worldwide economic catastrophe.
RELATED: As stock bleeds G7 plays down quick fix
A statement from the G7 meeting in Washington says they'll ensure their banks and other major financial institutions can raise enough capital from public as well as private sources to re-establish confidence and allow them to continue lending to households and businesses.
The G7 nations will also ensure people can have confidence in the safety of their deposits.
Meanwhile the US government is to buy an ownership stake in a broad array of American banks for the first time since the Great Depression as part of the rescue package passed by Congress last week.
Treasury Secretary Henry Paulson has announced the historic step after stock markets jolted still lower around the world.
Overnight stock prices hurtled downward in the US Europe and Asia, even as President George W Bush tried to reassure Americans and the world the governments are aggressively addressing what has become a near panic.
Source: AAP
RELATED: As stock bleeds G7 plays down quick fix
A statement from the G7 meeting in Washington says they'll ensure their banks and other major financial institutions can raise enough capital from public as well as private sources to re-establish confidence and allow them to continue lending to households and businesses.
The G7 nations will also ensure people can have confidence in the safety of their deposits.
Meanwhile the US government is to buy an ownership stake in a broad array of American banks for the first time since the Great Depression as part of the rescue package passed by Congress last week.
Treasury Secretary Henry Paulson has announced the historic step after stock markets jolted still lower around the world.
Overnight stock prices hurtled downward in the US Europe and Asia, even as President George W Bush tried to reassure Americans and the world the governments are aggressively addressing what has become a near panic.
Source: AAP
