Dodd's committee

26 Oct

Uses for $700 billion bailout money ever shifting

Posted by cahn in Alabama, Bank, Bank executives, Bank of New York Mellon, bank plan, Bush administration, Charles Schumer, Charlie Rose, Christopher Dodd, Congress, Connecticut, Dodd's committee, Federal Deposit Insurance Corp, Federal Deposit Insurance Corp., Finance, Henry Paulson, http://biz.yahoo.com/ap/081025/meltdown_evolving_bailout.html, Insurance, National City Corp., National City Corporation, Neel Kashkari, New York, PNC Financial Services Group Inc., Richard Shelby, Senate, Senate Banking, Housing and Urban Affairs Committee, Sheila Bair, The Bank of New York Mellon Corporation, The PNC Financial Services Group, Inc., Treasury, US, USD, Wall Street, Washington

WASHINGTON (AP) -- First, the $700 billion rescue for the economy was about buying devalued mortgage-backed securities from tottering banks to unclog frozen credit markets.

Then it was about using $250 billion of it to buy stakes in banks. The idea was that banks would use the money to start making loans again.