Treasury Mulls Private Role in TARP: Report

In another step, U.S. bank regulators could announce guidelines this week designed to encourage U.S. banks to remain active lenders as financial markets are squeezed, the Journal reports.

The fact the Treasury Department may now require firms to raise money marks a new phase for the government, which had resisted such a move previously. Before launching its $250 billion capital-purchase program last month, Treasury toyed with requiring banks to raise matching funds alongside any government investment, but it thought that might discourage some firms from participating. It also worried that firms would not be able to raise private money in the current market environment, the newspaper reports.