The federal government will start distributing funds from its $700 billion bailout package this week to nine major banks and 10 regional banks, according to a CNNMoney.com article.

The government announced this morning that it will purchase $125 billion in stock in nine major banks – including Citigroup Inc., Bank of America Corp., Goldman Sachs Group Inc. and Wells Fargo & Co. – marking the first deployment of the rescue package that was passed by Congress on Oct. 3.

Assistant Treasury Secretary David Nelson said the government will start purchasing the stock this week in anticipation that it will bolster banks’ balance sheets and help them resume normal lending practices.

Ten regional banks also are expected to receive about $18 billion from the rescue plan, two of which are Ohio-based KeyCorp and Huntington Bancshares Inc., which will receive a total of $3.9 billion.

Others include Capital One Financial Corp., Valley National Bancorp, First Horizon National Corp., Regions Financial Corp. and SunTrust Banks Inc., which will receive a combined $11.7 billion. Northern Trust Corp. and City National Corp. will receive a total of $1.9 billion, and Provident Bancshares Corp. did not disclose the assistance it would receive.

In exchange for financial support, banks must give up a stake to the government and agree to pay dividends on government shares. The banks also are required to keep pay packages of top executives in check.