Monday, February 23, 2009

New Steps To Help The Banking Industry

As President Obama prepares to meet with members of Congress and officials of financial institutions to further discuss, today, his economic bailout plan, the latest government step to further support the banking industry is being revealed.

The Treasury Department will seek ways to reduce regulations on the banking industry in the hopes that more credit will be extended to borrowers in order to stimulate the economy.

The idea, according to Treasury, is to find ways to reduce the financial strain on the banks to make it easier for them to offer credit.

According to a joint statement issued this morning by Treasury, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision and the Federal Reserve Board the steps are being taken to ensure that the nation enjoys "a strong, resilient financial system."

"The U.S. government stands firmly behind the banking system during this period of financial strain to ensure it will be able to perform its key function of providing credit to households and businesses," the statement says.

"The government will ensure that banks have the capital and liquidity they need to provide the credit necessary to restore economic growth. Moreover, we reiterate our determination to preserve the viability of systemically important financial institutions so that they are able to meet their commitments."

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