US to Unveil $250 Billion Plan to Buy Stock in Private Banks

The Bush administration is expected to unveil a plan to spend up to $250 billion buying stock in private banks so they can raise money and resume normal lending.

Government and financial industry sources say President George Bush will announce the plan at the White House Tuesday. They say the plan will include a temporary guarantee for loans that banks make to each other - a critical part of the nation's credit system.

This would all be part of the $700 billion market rescue plan Congress approved earlier this month.

Governments around the world are moving to rescue banks with huge bailouts to prevent an international recession.

France, Germany, Spain and Austria have pledged more than $1 trillion to buy part ownership in some banks and guarantee some loans.

Major Asian markets, reacting to the news, closed sharply higher for the second straight day Tuesday. Japan's Nikkei, which was closed Monday for a holiday, led the way, climbing 14 percent.

Many of the details of the governments' actions were worked out in crisis talks over the past few days in Washington and Paris.

There may be more gatherings of key leaders to address the financial crisis. Italian Prime Minister Silvio Berlusconi said Monday he and President Bush discussed a possible gathering of G-8 leaders soon.