Paulson outlines equity purchase program

WASHINGTON, Oct. 20 (UPI) -- U.S. Treasury Secretary Henry Paulson Jr. emphasized Monday the $250 billion bank equity purchase program would not cost taxpayers.

"This is an investment, not an expenditure, and there is no reason to expect this program will cost taxpayers anything," Paulson said in a statement.

Aside from the nine large banks originally signed up for the program, the Treasury has received interest "from a broad group of banks of all sizes," Paulson said.

As such, he outlined streamlined procedures for applying for the program, telling banks the terms would remain the same for all that applied before Nov. 14.

"This program is not being implemented on a first-come-first-served basis," he said.

Paulson also said banks that participate would need to "accept restrictions on executive compensation, including a clawback provision and a ban on golden parachutes during the period that Treasury holds equity," Paulson said.

Clawback refers to returning compensation if certain conditions are not met. Golden parachutes are compensation packages executives receive if they are terminated from their positions.