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US summons banks to meeting on rescue plan

(Agencies)
Updated: 2008-10-14 00:13

WASHINGTON - The Bush administration summoned executives from leading financial firms to a meeting Monday to work out details of the $700 billion plan aimed at thawing frozen bank lending that is stifling the economy.

Treasury Department spokeswoman Brookly McLaughlin said officials from the Treasury Department and the Federal Reserve would participate in the meeting at the Treasury Department. The discussions are aimed at finalizing details on a financial market stability plan.

The administration's plan to implement the rescue package Congress passed on Oct. 3 could include the government taking partial ownership in banks and purchasing bad debt from financial companies.

President Bush said the plan will help banks gain access to capital and unfreeze credit markets.

"These are tough times for our economies yet we can be confident that we can work our way through these challenges and America will continue to work closely with the other nations to coordinate our response to this global financial crisis," Bush said following a meeting with Italian Premier Silvio Berlusconi.

The discussions in Washington came as Europe took swift, unified action to thaw frozen lending and get the global economy moving again.