Financial Times FT.com

Lehman Brothers

US searches for effective voluntary response

By Krishna Guha in Washington

Published: October 12 2008 19:15 | Last updated: October 12 2008 19:15

US officials worked around the clock over the weekend to finalise plans for a financial sector recapitalisation programme, wrestling with the dilemma of how to make it both genuinely voluntary and effective.

People familiar with Treasury thinking told the FT the US plan would be open to non-bank financial companies such as GE Capital as well as banks, although the Treasury was not inclined to make public capital available to hedge funds or insurance companies.

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