Fed Market: Government Buys Banks

On Tuesday, the federal government acted again. In Bank of America, Bank of New York, Chase, Citigroup, Goldman Sachs, Morgan Stanley, State Street, and Wells Fargo, the United States Department of Treasury purchased preferred equity. They removed insurance restrictions. Additionally, the Federal Reserve will guarantee debt. They will purchase commercial paper.

Obviously, President Bush, Secretary of Treasury Henry Paulson, Federal Reserve Chairman Ben Bernanke, Congress, and the international community’s actions are unprecedented. With that stated, they are correct. Capitalism’s theory may suffer. Conservatives may wince. However, America could not survive inaction.

President Bush Complete Text

Secretary of Treasury Henry Paulson Complete Text