Today I am announcing new measures / America/’s taking into implement the G7 action plan and strengthening banks across our country.
First, the federal government will use a portion of the 700-billion-dollar financial rescue plan to inject capital into banks by purchasing equity shares. This new capital will help healthy banks continue making loans to businesses and consumers, and this new capital will help struggling banks fill the hole created by losses during the financial crisis, so they can resume lending and help spur job creation in economic growth. This is an essential short-term measure to ensure the viability of America/’s banking system. And the program is carefully designed to encourage banks to buy the shares back from the government when the markets stabilize and they can raise capital from private investors.
Second, and effective immediately. The FDIC will temporarily guarantee most new debt issued by insured banks, this will address one of the central problems plaguing our financial system. Banks have been unable to borrow money and that has restricted their abilities to lend to consumers and businesses. When money flows more freely between banks, it will make it easier for Americans to borrow for cars and homes and for small businesses to expand.
Third the FDIC will immediately and temporarily expand government insurance to cover all non-interest-bearing[无息可转让] transaction accounts. These accounts are used primarily by small businesses to cover day-to-day operations. When assuring every dollar needs in accounts, we will give small business owners a piece of mind and bring stability to the ,we will bring greater stability to the banking system.
Fourth the Federal Reserve will soon finalize work on a new program to serve as a buyer of last resort for commercial paper, this is a key source of short term financing for American businesses and financial institutions. And by unfreezing the market for commercial paper, the Federal Reserve will help American businesses meet payroll and purchase inventory and invest to create jobs