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...plan calls for Treasury to inject billions of dollars into the banking system. Paulson is requiring the nine biggest lenders in the country - including Bank of America, Citigroup and JPMorgan - to sell $125 billion of preferred shares to the taxpayer and to commit in return to lending out much of that money. That should have an immediate effect in reviving the lending business. Treasury is making another $125 billion available to smaller banks on the same terms...

Author: /time Magazine | Title: Another Try: Will Treasury's New Rescue Plan Work? | 10/14/2008 | See Source »

...Corporation (FDIC) voted for the first time since its creation during the Great Depression to take a "systemic risk exception" to the rules that usually limit what it can do. The exception allowed the FDIC to cover some of Wachovia's potential losses, enabling the bank's sale to Citigroup and its continued operation...

Author: /time Magazine | Title: US Bank Failures ... And Counting | 10/13/2008 | See Source »

...obvious answer is yes. Banks are failing - 13 have gone under so far this year - and they're going to continue failing. One hedge-fund star said the markets are now pricing the chance of a default in the next five years by Morgan Stanley or Citigroup at 45% and 21%, respectively...

Author: /time Magazine | Title: US Bank Failures ... And Counting | 10/13/2008 | See Source »

...their first real look since the weekend at how much, if at all, credit has thawed. The rest of the week will bring a slew of economic reports - retail sales, consumer prices, housing starts - and corporate earnings, including those from financial firms such as JPMorgan Chase, Wells Fargo, Citigroup, Merrill Lynch and BlackRock. Will those reports send stocks soaring or back into the trenches? It's a great question - with an unknowable answer...

Author: /time Magazine | Title: Wall Street's Big Bounce: Don't Start Cheering Yet | 10/13/2008 | See Source »

...aren't dependent on outside borrowing in order to make payroll and keep the lights on. And even those municipalities that do use short-term notes may succeed in selling them in the end. On Oct. 8, Massachusetts finally sold its $750 million worth after hiring Goldman Sachs and Citigroup to find buyers, instead of running a normal auction. California is going to try to sell $4 billion worth of securities next week...

Author: /time Magazine | Title: States and Cities Grapple with the Credit Crunch | 10/9/2008 | See Source »

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