US to inject capital into banks, says Bush

US to inject capital into banks, says Bush

Washington: US President George W. Bush said that the US government will directly inject capital into financial institutions to help thaw frozen credit markets, create jobs and fuel economic growth.

“This is an essential short-term measure to ensure the viability of America’s banking system," he said after meeting with his top economic advisers.

Bush also said that the Federal Deposit Insurance Corp will insure most new debt issued by banks and expand insurance to cover non-interest bearing accounts. He insisted the government’s steps would be limited and temporary.

“It will take time for our efforts to have their full impact, but the American people can have confidence about our long-term economic future," he said.