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Bush says U.S. to inject capital into banks
WASHINGTON (Reuters) - U.S. President George W. Bush said on Tuesday the U.S. government will directly inject capital into financial institutions to help thaw frozen credit markets, create jobs and fuel economic growth.
"This is an essential short-term measure to ensure the viability of America's banking system," he said after meeting with his top economic advisers.
Bush also said the Federal Deposit Insurance Corp will insure most new debt issued by banks and expand insurance to cover non-interest bearing accounts. He insisted the government's steps would be limited and temporary.
"It will take time for our efforts to have their full impact, but the American people can have confidence about our long-term economic future," he said.
(Reporting by Jeremy Pelofsky and Tabassum Zakaria, Editing by Chizu Nomiyama)
