UPDATE 1-U.S. weighs backing bank debt, deposits-reports

SYDNEY, Oct 10 (Reuters) - The U.S. government is weighing guaranteeing billions of dollars in bank debt and temporarily insuring al U.S. bank deposits, in a bid to unfreeze bank lending and staunch massive losses in equity markets, The Wall Street Journal reported on Friday. The New York Times reported that U.S. and British officials were converging on a similar blueprint to stem financial chaos involving injections of government money into banks in return for ownership stakes and guarantees of repayment for various types of loans. On Wednesday, Britain said it would inject 50 billion pounds ($87 billion) of emergency capital into banks left reeling by the global financial crisis and extend 250 billion pounds in guarantees to help them refinance senior debt. The British concept to expand its proposal to other countries has a... [read full story]