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November 26, 2008

Federal Reserve & Treasury Announce New $800 Billion Plan
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The Federal Reserve and the Treasury have announced plans to create
essentially a government bank and to pump $800 billion into new lending
programs in the latest attempt to revive the nation’s crippled financial
system. The government has now assumed nearly $8 trillion in direct and
indirect financial obligations over the past year. Under the latest
plan, $600 billion will be spent to buy mortgage-related debt and
securities and $200 billion to back financing for other forms of
lending, including credit cards, auto purchases and loans for students
and small business.

Treasury Secretary Hank Paulson: “It will take time to work through the
difficulties in our market and our economy, and new challenges will
continue to arise. I and my regulatory colleagues are committed to using
all the tools at our disposal to preserve the strength of our financial
institutions and stabilize our financial markets, to minimize the
spillover into the rest of the economy.”