U.S. to Unveil Bank-Investing Plans: Report

Updated from Monday, Oct. 13

The federal government is planning to unveil new initiatives to address stalled credit markets Tuesday, including a plan to buy equity stakes in banks, according to a published report.

The Wall Street Journal reported that the Bush administration plans to detail new initiatives Tuesday that are meant to help resolve the financial crisis. One component of the program may involve the Treasury Department buying roughly $250 billion worth of equity in banks, the report said, citing people with knowledge of the situation. The funds would come from the $700 billion bailout package Congress recently cleared, the report said.

The U.S. government is expected to take stakes in nine of the nation's top financial institutions as part of a new plan to restore confidence to the battered U.S. banking system, the Journal reports Tuesday. ...