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| WORLD NEWS - WORLD NEWS - USA Bush |
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 14 Oct US govt to take $250bn stake in banks
US president, George Bush (pictured) today announced his government will purchase stakes worth $250bn (£143bn) in a wide variety of banks, in an effort to restore confidence in the sector.
"This is an essential short-term measure to ensure the viability of America's banking system," Bush said. "This is not intended to take over the free market, but to preserve it."
He said the move would help to return stability to the US banking sector and ultimately help preserve free markets.
The move is similar to steps taken by the UK and other European countries.
Bush also said that the Federal Reserve would finalise work on a new programme that would make it the buyer of last resort for companies' short-term debt, known as commercial paper.
The money will come from the $700bn bail-out package approved by US lawmakers earlier this month. Analysts said Bush’s announcement - and its anticipation earlier in the day - has already had a positive impact on global shares.
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