US injects $250b into key banks

WASHINGTON: US President George W. Bush yesterday announced a $250 billion plan by the US government to directly buy shares in the nation's leading banks, saying the drastic steps were "not intended to take over the free market but to preserve it".

Nine major banks will participate initially, including all the country's largest institutions, he announced, in a move that sent stocks soaring on Wall Street.

"These efforts are designed to directly benefit the American people by stabilizing the financial system and helping the economy recover," he said.