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Treasury Makes First Payments From Rescue Fund

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Oct 29, 2008 1:13 pm US/Pacific

Treasury Makes First Payments From Rescue Fund

 Timeline: U.S. Credit Crunch & Financial Failures

 View Market Summaries & Leading Stock Changes
WASHINGTON (AP) ― The Treasury Department says it has made the first payments from the $700 billion rescue fund, a total of $125 billion in stock purchases from nine major financial institutions.

Treasury officials on Wednesday released a report on the payments, showing that the $125 billion in purchases of bank stock were made on Tuesday. The program is designed to inject fresh capital into the nation's banks as a way to encourage them to resume more normal lending.

The report showed that the payments included $25 billion each to Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co.

In addition, Bank of America Corp. received $15 billion and Merrill Lynch & Co., which is being acquired by Bank of America, got $10 billion.

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