US bailout to include "significant" equity stake

The US Treasury is likely to spend a very significant amount of the $700 billion at its disposal on recapitalising the US's battered banking sector, an official who will oversee the Troubled Asset Relief Plan (TARP) told an audience in London on Monday.

Jim Lockhart, the director of the Federal Housing Finance Agency (FHLA) and a member of the Financial Stability Commission, a body that will monitor the implementation of TARP, said: "It's still a work in progress but probably a very significa