US President George Bush today said the banks in which Federal government is planning to invest would remain private entities and the government would only be a "passive investor".
A day after announcing the decision to buy equity stakes in the country's financial institutions, Bush asserted that there would be no government officials sitting on the board of private companies.
Bush yesterday said his government would buy equity stakes in country's banks at a cost of 250 billion dollars as part of its mega 700 billion dollar rescue package for the financial sector.
"The government will buy only a certain number of shares in individual banks. These banks will be privately controlled. The liquidity measures being taken are structured such that the government will be a passive investor.
"In other words, there won't be government officials sitting on the board of private companies," the President nsaid in a statement today.
Pointing out that the actions initiated by the administration are designed to preserve "free enterprise," Bush said decisions initiated to enhance liquidity are a "temporary".
"It’s very important for the American people to know that the program is designed to preserve free enterprise, not replace free enterprise. Decisions we took to enhance liquidity and make sure our financial instruments are strong is a temporary decision.
For example, the equity purchases in the banks is designed so that these shares will eventually be sold back to the government," the President said