A government-sponsored bill to prop up struggling financial institutions with public funds is apparently designed to boost investor confidence.
But some economists argue that the bill, approved Friday by the House of Representatives, will probably not serve as a powerful tool to stabilize the nation's financial system.
The bill, which mainly targets regional banks, "shinkin" savings and loan banks and credit unions, will allow public funds to be injected into financial institutions that have not sustained a negative net worth, as a pre-emptive measure designed to boost their capital.
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