Treasury to plow $250 billion into bank equity

WASHINGTON (Reuters) - The U.S. Treasury Department on Tuesday unveiled a plan to inject $250 billion into beleaguered U.S. banks to beat back a credit crisis that threatens to swamp the economy.

The program calls for the government to buy preferred shares in qualifying financial institutions, with stakes in each institution limited to $25 billion or 3 percent of risk-weighted assets. It set a November 14 deadline for banks to apply for government purchases.

U.S. Treasury Secretary Henry Paulson said nine banks described as "healthy institutions" had agreed to accept government stakes for the good of the U.S. economy.

(Reporting by David Lawder, Editing by Chizu Nomiyama)