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Bush to unveil cash boost for troubled banks

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Bush to unveil cash boost for troubled banks

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The United States is due to announce a 185 billion euro cash injection into its banks following Europe’s lead.

The money is part of 520 billion euro package already agreed by Congress.

Reports suggest that half the total figure will be divided up between the country’s top nine banks in order to thaw credit markets.

Federal Reserve Chairman Ben Bernanke said the move “ constituted a broad-based attempt to end the crisis.”

The Treasury intends to invest 18 billion euros in both Citibank and JP Morgan, while a similar amount will be split between Bank of America and Merrill Lynch.

The other beneficiaries are Wells Fargo, Goldman and Morgan Stanley, Bank of New York and State Street.

Insiders claim none of the banks were given any choice in the matter and must sign up to compensation restrictions decreed by Congress.