The Treasury plans to spend $25 billion each for stakes in Citigroup and JPMorgan, people said. Another $25 billion will be divided between Bank of America and Merrill, which agreed last month to be acquired by Bank of America. Goldman and Morgan Stanley will each get $10 billion, while State Street and Bank of New York will get injections of about $3 billion each, people said.
Financial institutions are struggling to regain the confidence of investors, counter parties and clients after bad loans caused more than $635 billion of write downs across the industry. Falling share prices have made it harder to raise equity while surging borrowing costs have made debt refinancing harder.
Photos of the CEO's coming out of the US Treasury Dept. look like they just won the lotto.