U.S. to pump $250 billion into banks

By Mike Peacock and Elaine Lies LONDON/TOKYO (Reuters) - The United States will pump $250 billion (142 billion pounds) into its banks on Tuesday, following similar measures in Europe, but data showed the threat of recession has not been banished even if a financial sector meltdown has. Major European economies showed signs of flagging output and falling business confidence, but smaller countries also suffered acutely. Iceland sought to save its economy at loan talks in Moscow, while its stock market plunged 76 percent. Under the U.S. Treasury plan, about half the total funds is likely to go to the top nine U.S. banks to get them lending to each other again,... [read full story]