Group of Seven endorses U.S. bailout

WASHINGTON, Sept. 22 (UPI) -- The Group of Seven Monday strongly endorsed the U.S. initiative to buy risky assets from financial concerns.

"We strongly welcome the extraordinary actions taken by the United States to enhance the stability of financial markets," the G7 finance ministers and central bank governors said in statement. The group said it endorsed the plan "to remove illiquid assets that are destabilizing financial institutions."

The G7 nations are comprised of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. It's top financial ministers discussed the plan during a conference call Monday, the statement said.

The nations also "strongly welcome" steps taken to "address liquidity pressures," and last week's decisions by several regulating authorities to enact a moratorium on short selling of financial stocks.

Last week, the U.S. Federal Reserve moved to expand the Primary Dealer Credit Facility and the Term Securities Lending Facility to enhance liquidity for both primary dealers and the financial markets in general. The Fed also increased swap lines with foreign central banks by $180 billion.

On Friday, the Securities and Exchange Commission and the Bank of England put temporary holds on short selling, which allow investors to bet on declines in various companies.