New direction for rescue plan

The Bush administration today announced a change course in its implementation of the $700 billion Troubled Asset Relief Program, with most of the initial $350 billion authorization now earmarked to buy preferred stock in banks rather than mortgage backed securities and whole mortgage loans.

The change in direction -- part of a global response to the credit crisis officials said was necessitated by the continued reluctance of banks to loan each other money -- is intended to restore lending by recapitalizing banks.

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