Ex-Fed's Poole: Treasury coercion may hinder plan

The US Treasury's decision to force some banks to participate in its plan to recapitalise America's banks could prove its undoing, warned Bill Poole, a former president of the St Louis Federal Reserve.

The US Treasury said on Tuesday that nine of the US's biggest banks would sell $125 billion worth of preferred shares to the government in exchange for capital as part of Washington's $250 billion re-capitalisation plan.

The nine are Morgan Stanley, Merrill Lynch, Goldman Sachs, Bank of America

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