WASHINGTON (Reuters) - The Treasury Department intends to unveil on Tuesday a $250 billion plan to purchase equity stakes in financial institutions along with a three-year guarantee of bank-to-bank lending, according to a financial policy source familiar with the plan.
The Treasury plan will also contain a provision for unlimited coverage from the Federal Deposit Insurance Corp through 2009, the source said.
Further, the Bush administration is expected to formally notify Congress that it intends to use the next $100 billion available to it under the $700 billion market rescue plan passed by Congress earlier this month, according to the source.
(Reporting by Karey Wutkowski and Patrick Rucker)
