Futures Point to Strong Open on Bank Support

Updated from 7:08 a.m. EDT

Premarket futures were suggesting a higher open for U.S. stocks Monday, as governments worldwide initiated massive emergency aid packages for struggling banks.

Futures for the S&P 500 were up 42 points at 933 and were 31 points ahead of fair value. Nasdaq futures were higher by 53 points at 1335 and were 57 points better than fair value.

Central banks across the globe were initiating policies to offer liquidity to banks and bolster lending markets.

In the U.S., Interim Assistant Secretary for Financial Stability Neel Kashkari said in a statement that the Treasury Department had enlisted law firm Simpson Thatcher to advise it on a plan to buy equity positions as a measure in its $700 billion relief package for financial firms.

The U.K. announced a plan to inject capital into three of its struggling banks. Royal Bank of Scotland ( RBS), Lloyds ( LYG) and HBOS will get up to $63 billion in government support, the U.K. government said.

Australia said it would guarantee all of its banks' deposits and international debt. The United Arab Emirates said it would guarantee its domestic bank deposits. France and Italy are expected to detail their own plans later Monday. Germany, meanwhile, was preparing to expand a bailout package for its banks to $680 billion.

According to a report by Bloomberg, Treasury Secretary Henry Paulson was looking into a U.S. program to guarantee debt issued by domestic banks following the significant intervention by European governments.

The Federal Reserve said it would offer unlimited dollar funding to swap facilities with several European central banks to meet increasing demand.

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