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European leaders to inject billions into banks

European leaders agreed Sunday to a plan that would put billions of euros into their banks in hopes of restoring a troubled financial system, The New York Times reported.

The European countries, led by France and Germany, promised to take equity stakes in distressed banks and guaranteed bank lending for periods of up to five years.

The plan “treats all the dimensions of the financial crisis,� President Nicolas Sarkozy of France said at a news conference.

The leaders of the 15 countries that use the euro did not name the price they would put into the plan, unlike Britain and the United States.

Individual countries are considering plans to give money to European banks.

Germany is considering a plan to inject up to 100 billion euros into its banks, according to a person briefed on the government’s work, The New York Times reported.

The 15 leaders want to work together and come to a collective response.

Comments

I often wonder where all this money is going to go. In the US, many of the Bankers have been continuing to fly corporate jets and have expensive parties while the tax payer is left holding the bill.

Billy