Ex-Fed's Poole: Treasury coercion may hinder plan

The US Treasury's decision to force some banks to participate in its plan to recapitalise America's banks could prove its undoing, warned Bill Poole, a former president of the St Louis Federal Reserve.

The US Treasury said on Tuesday that nine of the US's biggest banks would sell $125 billion worth of preferred shares to the government in exchange for capital as part of Washington's $250 billion re-capitalisation plan.

The nine are Morgan Stanley, Merrill Lynch, Goldman Sachs, Bank of America

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.