The US Treasury unveiled a revamp of its financial rescue plan yesterday, pledging to clean up to $1,000bn dollars of distressed assets from banks’ balance sheets and inject fresh capital into troubled institutions.
The Senate also passed its $838bn stimulus bill, clearing the way for Congress to thrash out final legislation for President Barack Obama to sign into law.
But financial markets reacted negatively to the new Treasury rescue plan, with many economists and market participants saying it fell well short of the radical intervention required.
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