U.S. Government to invest in banks

[10/14] The Treasury Department outlined its latest plan to stabilize the US financial system and restore confidence. From the $700 billion recently approved by Congress, the government is expected to invest up to $250 billion in the banks via preferred stock, with about half of that going to nine major banks. The Treasury Department confirmed that nine large institutions will participate but did not name the banks. The Wall Street Journal reported that the companies that have agreed to participate include Wells Fargo (WFC $34), Goldman Sachs Group (GS $127), Morgan Stanley (MS $24), Bank of America (BAC $27 1) and Citigroup (C $18). Shares of the firms are up sharply but none have commented.

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