U.S. may buy $250 billion in bank stakes

By Daniel Trotta NEW YORK (Reuters) - The United States ushered in a new era in banking on Tuesday with plans to take ownership stakes in major financial institutions totalling as much as $250 billion (142.7 billion pounds), an incursion into the private sector that was called a regrettable last resort. The U.S. government followed European powers that agreed to recapitalize their banks a day earlier, triggering a global stock market rebound that continued on Tuesday with major stock indexes all surging. Japan's Nikkei climbed more than 14 percent -- the biggest one-day gain in its history -- and European shares rose nearly 6 percent. The latest measures are intended to stimulate... [read full story]