Treasury to announce new round of funding

WASHINGTON, Oct. 24 (UPI) -- The U.S. Treasury, pushing to show progress in the federal bailout plan, is poised to announce a round of investments in regional banks, sources said.

Treasury officials could announce a list of participating banks Friday, The Washington Post reported.

The focus of the bailout has turned. It was first proposed as way for the Treasury to take frozen assets off bank ledgers. But that plan took a backseat to a plan to purchase bank equity, similar to plans enacted in Europe.

Legal entanglements have stalled the actual flow of bailout funds. Assistant Treasury Secretary Neel Kashkari told members of Congress Thursday it would take "a few weeks" for the next round of banks to receive funds, the Post reported.

Large banks, such as Bank of America and J.P. Morgan Chase, were involved in the first round of funding.

In return for the investments, banks must agree to issue the government shares of preferred stock and warrants on shares of common stock.

The banks must also accept restrictions on executive compensation and company dividends, the Post reported.