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White House defends bank bail-out

Updated on 31 October 2008

Source PA News

The White House, under fire from Democrats and Republicans alike, has defended giving billions of bail-out dollars to banks that plan to reward shareholders and executives or even buy other banks.

Allowing banks to engage in such normal business activities could help loosen lending and revive the sagging economy, Ed Lazear, chairman of the Council of Economic Advisers, said.

He said the administration would not impose conditions beyond those required when Congress created the bail-out programme and authorised the government to buy stock in financial institutions.

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