US Treasury releases 125 billion dollars to nine banks

WASHINGTON, October 29, 2008 (AFP) – The US Treasury said Wednesday it had finalized the infusion of 125 billion dollars into nine major commercial banks as part of a financial system rescue plan.

Officials said Citigroup, JP Morgan Chase and Wells Fargo each received 25 billion dollars in capital.

Bank of America got 15 billion dollars and its planned acquisition partner, Merrill Lynch, is receiving 10 billion, data disclosed by the Treasury showed.

Officials have pledged to commit 250 billion dollars to bank recapitalization under the 700-billion-dollar rescue plan approved by Congress. Of the sum, 125 billion is going to the nine major national banks and 125 billion to regional institutions.

Goldman Sachs and Morgan Stanley each obtained 10 billion dollars in capital, while Bank of New York Mellon was given three billion. A two-billion-dollar infusion was given to State Street Corp.