Paulson close to finalising stability plan

US Treasury Secretary Hank Paulson was last night putting the finishing touches to a financial stability plan aimed at recapitalising the American banking sector and returning confidence to global financial markets. By James Quinn, Wall Street Correspondent Mr Paulson was understood to have briefed senior banking officials on the scheme, which will see the US government become a shareholder in major US banks as well as providing inter-bank lending guarantees in an effort to kick-start the credit markets. The plan – similar in many ways to the one put in place by the British government – comes as America's response to this weekend's G7 discussions. Shares on Wall Street rallied by more than 7pc – 591.42 points higher at 9,042.82 during lunchtime trading – in the hope that a workable investment solution for US banks can be... [read full story]