Paulson endorses bank stock purchase plan

By MARTIN CRUTSINGER AP Economics Writer WASHINGTON (AP) - Treasury Secretary Henry Paulson said Friday that the Bush administration will move ahead with a plan to buy stock in financial institutions. Paulson said the program to purchase stock in financial institutions will be open to a broad array of institutions. The administration received the authority to make direct purchases of stock in banks in the $700 billion measure Congress passed last week to rescue the nation's financial system. It would mark the first time the government has taken equity ownership in banks in this manner since a similar program was employed during the Great Depression. Paulson announced said the administration was moving forward with the program during a news conference at the conclusion of discussions among finance officials of the Group of... [read full story]