Paulson: Here Are Rules for Govt. Bank Buys

Treasury Secretary Hank Paulson just concluded a brief announcement laying out the rules of the $250 billion direct federal investment into banks.

Paulson said the "streamlined" process for banks wishing to be partially purchased by the government will include a single application form that has just been posted on the Treasury Web site.

The deadline for banks seeking some of the $250 billion will be Nov. 14, Paulson said, but that doesn't mean banks should rush their applications.

"This is not being implemented on a first-come, first-served basis," Paulson said, evidently trying to avoid a reverse run on the bank.

Banks that want a piece of the government money should look at the application form on the Treasury site today then talk to their primary regulator, such as the Fed or the FDIC.

Banks that Treasury decides to invest in will be publicly identified within 48 hours of their selection by Treasury, Paulson said, but banks that withdraw their application or are denied will not be identified.

Paulson said Treasury is getting calls from banks of all sizes from all over the country that are interested in getting government money.

-- Frank Ahrens