The New Nation - Internet Edition

Reuters, London/Tokyo

The United States will announce plans on Tuesday to inject $250 billion into its banks, following similar, concerted measures in Europe to revive money markets and stave off global recession.

The Treasury is due to unveil its plan at 8:30 a.m. EDT with about half of the total figure likely to go to the top nine U.S. banks to get them lending to each other again, people familiar with the plan said.

Federal Reserve Chairman Ben Bernanke said in an article on the Wall Street Journal's website that the measures, which he did not detail, constituted a broad-based attempt to end the crisis which began with collapse of the U.S. housing market and now threatens industry and jobs worldwide.

"These steps will allow us to restore more normal market functioning and encourage private capital to further support the reinvigoration of financial markets," he wrote.

The Treasury will buy stakes in Bank of America Corp, Wells Fargo, Citigroup, JPMorgan Chase & Co, Goldman Sachs, Morgan Stanley and Bank of New York Mellon Corp, said two sources speaking on condition of anonymity.

Media reports said State Street Corp and Merrill Lynch would also receive a capital injection.

Japan joined the global push, saying it could inject public funds into regional banks to make sure small firms can get cash.

Similar plans in Europe helped restore some confidence among investors on Monday. London, Berlin and Paris offered direct capital injections for banks and to underwrite interbank lending to revive frozen money markets that threaten cash-strapped businesses as well as the banking system itself.

London, Berlin and Paris offered direct capital injections for banks and to underwrite lending between banks that has all but frozen, choking off funds that ultimately drive private business and industry.

Germany approved a rescue plan worth up to 500 billion euros ($679 billion) and France put up a total of 360 billion euros.

Britain, which has led the way with a twin blueprint of bank equity stakes and money market support, had already pledged 250 billion pounds to guarantee lending between banks and stumped up 37 billion pounds to buy into its troubled financial giants.