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According to Reuters, the Treasury will make $250 billion directly into banks. Ciitgroup (C) and JPMorgan (JPM) would get $26 billion each. Merrill Lynch (MER) and Bank of America (BAC) would each get $12.5 billion.

Reuters reports that auto companies could return to Congress for help.

Reuters said Bernanke commented that the US plan should help revive credit markets.

Reuters writes that Legg Mason (LM) has set up a unit to look at distressed debt.

Reuters writes that JC Penney (JCP) may launch its own apparel line.

Reuters reports that Boeing’s (BA) latest talks with it machinists union failed.

Reuters reports that a long-term study shows that Merck’s (MRK) Vioxx can be a threat to the heart.

The Wall Street Journal reports that many funds are moving money into cash, a bearish sign.

The Wall Street Journal reports that Morgan Stanley (MS) will shrink some of its high-risk businesses.

The Wall Street Journal reports that Google (GOOG) and Yahoo! (YHOO) are in talks with Justice to avoid an antitrust suit.

The Wall Street Journal reports that Sovereign Bancorp agreed to sell itself to Banco Santander for $1.9 billion in stock.

The Wall Street Journal writes that GM (GM) will close more plants and further limit spending.

The Wall Street Journal reports that debt pressure have forced Sumner Redstone to sell some of his positions in CBS (CBS) and Viacom (VIA).

The Wall Street Journal writes the the one-day rally may not free up credit as the economy moves into a deep recession.

The Wall Street Journal reports that the leveraged-loan market is under pressure and that may hurt large private equity firms.

The Wall Street Journal reports that Honda (HMC) will cut its SUV output.

The Wall Street Journal reports that IBM (IBM) will expand facilities in China.

The New York Times writes that commodities prices have dropped sharply as markets have fallen.

The New York Times writes that the role of Chrysler owner Cerberus is critical in its talks with GM (GM)

The New York Times reports that $11 billion in M&A deals were recently canceled.

The New York Times reports that sovereign funds are hoarding cash.

The FT reports that Japan announced a plan to steady its credit markets.

The FT writes that Citigroup (C) has moved to stop in-fighting among its executives.

The FT reports that Hank Greenberg, former chief executive of AIG, will launch an alternative plan to save the company.

Bloomberg reports that British home sales dropped to their lowest level in 30 years.

Douglas A. McIntyre