Sector Snap: Bank stocks fall as US mulls plan (AP)

Thursday October 9, 5:46 pm ET By Sara Lepro, AP Business Writer Bank stocks decline amid news US is considering part ownership stakes NEW YORK (AP) -- Bank stocks fell Thursday amid news that the Bush administration is considering taking part ownership in a number of U.S. banks in its continued effort to help prop up ailing financial institutions. The aim of such a move would be to help loosen the credit markets and encourage lending among banks and to consumers. An administration official, who spoke late Tuesday on condition of anonymity because no decision has been made, said the $700 billion rescue package passed by Congress last week allows the Treasury Department to inject fresh capital into financial institutions and get ownership shares in return. "Will financial institutions go for that? There's a lot of questions,"... [read full story]