US banking bail-out unveiled

29 September 2008

Democrats and Republicans in the USA have agreed on a $700 billion deal which aims ‘to rescue America’s financial system and end the credit crunch’, as the BBC reports.

Page 1 of the ‘Discussion Draft’ of the Emergency Economic Stabilization Act states that the aim is ‘To provide authority for the Federal Government to purchase and insure certain types of troubled assets’.

The enormous scale of the deal means it could help the US overcome its financial problems, providing security for banks and making credit such as loans and mortgages more freely available.

However, it has also been extremely controversial, and Congress has insisted on adding a range of provisions designed to protect taxpayers.

Even so, the Act will still need to be passed by both houses of Congress.

If approved, it could restore confidence in financial markets and lead to the end of the credit crunch which has restricted access to loans, mortgages and other kinds of credit.

---

Think Money offer a range of loans to suit people in different financial situations. If you are considering taking out a loan, contact one of our loans advisers now.

Our initial advice on your best financial solution is free. Fees payable when continuing service is provided. Calls may be recorded for training and quality purposes.