US moving quickly on bail-out, hopes "healthy" banks participate
The US Treasury official heading up the government's 700-billion-dollar rescue of the financial system said Monday officials were working "quickly but methodically" to implement the plan, reports dpa.
Neel Kashkari outlined the government's progress in the plan to buy up mortgage-backed securities that have weighed on banks' balance sheets, leading to the collapse of several major financial institutions and a freezing of the credit markets over the past several weeks.
He said as part of the financial rescue plan the government would buy equity in banks, and said it would encourage "healthy insitutions" to participate.
Kashkari said the government was working to restore the flow of credit and shore up financial markets 10 days after the bail-out agreement was signed into law.
"We are moving quickly but methodically, and I am confident we are building the foundation for a strong, decisive and effective programme," he said.
Top managers to implement parts of the plan have been hired and standards were being outlined for the purchase of troubled assets, he said.