Feds make first payments for bank rescue

/ Source: The Associated Press

The Treasury Department says it has made the first payments from the $700 billion rescue fund, a total of $125 billion in stock purchases from nine major financial institutions.

Treasury officials on Wednesday released a report on the payments, showing that the $125 billion in purchases of bank stock were made on Tuesday. The program is designed to inject fresh capital into the nation's banks as a way to encourage them to resume more normal lending.

The report showed that the payments included $25 billion each to Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co.

In addition, Bank of America Corp. received $15 billion and Merrill Lynch & Co., which is being acquired by Bank of America, got $10 billion.