Bush promises more aid to banks if needed

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Bush promises more aid to banks if needed
By David Lightman | McClatchy Newspapers



WASHINGTON — President George W. Bush said Monday that Washington was ready to help other faltering financial institutions as it was helping Citigroup, the banking giant that just got a government guarantee for billions of dollars in risky assets and a $20 billion capital injection.

"We have made these kinds of decisions in the past. Made one last night," the president said after having a cup of coffee with Treasury Secretary Henry Paulson at the Treasury Department, next door to the White House. "And if need be, we're going to make these kinds of decisions to safeguard our financial system in the future."

The rescue, announced Sunday by the Treasury, the Federal Reserve and the Federal Deposit Insurance Corp., includes $20 billion from the $700 billion financial rescue package that became law last month.

It also guarantees $306 billion in shaky assets. The Treasury and the FDIC will provide help in case of "unusually large losses" on up to that amount of loans and securities backed by residential and commercial mortgages.

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