President Bush Announces Measures to Stabilize U.S. Banking System

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President George W. Bush released some details about how the U.S. government will be stepping in to restore stability and confidence to the U.S. banking system.

Delivering remarks at the White House, President Bush said the U.S. is taking "unprecedented and substantial" steps to stabilize the financial markets and strengthen the banking system.

Bush said the U.S. will be joining the European initiative by injecting new capital into struggling U.S. banks. Bush added that the Federal Deposit Insurance Corporation will guarantee most new debt issued by banks and all non-interest bearing bank accounts.

The FDIC mandate will also serve as the buyer of last resort for commercial paper.

Bush commented that these measures are not intended as a takeover of the financial system, but are instead aimed at preserving it.

By Steve Stecyk and edited by Stephen Huebl
©CEP News Ltd. 2008