Blackstone says U.S. action breaks back of crisis

By Megan Davies

DUBAI, Oct 14 (Reuters) - Blackstone Group chief executive Stephen Schwarzman said on Tuesday the U.S. government's expected actions to inject billions into its banks could break the back of the credit crisis.

"We will be looking today to an absolute sea change in the global financial system in terms of liquidity," Schwarzman said at a private equity conference in Dubai. This could be the time that "breaks the back of the credit crisis" he said.

The United States will announce plans on Tuesday to inject $250 billion into its banks, marking a turning point in the global financial crisis following a concerted European drive to do the same

The U.S. Treasury is due to unveil its plan at 1230 GMT with about half of the total figure likely to go to the top nine U.S. banks alone to get them lending to each other again, people familiar with the plan said.

"It will take several months before the banking system returns to better health," Schwarzman told reporters on the sidelines of the Super Return conference.

Despite the freeze, he said there was still some access to financing.

"Certain of us still can obtain financing in the current environment," he said. (Editing by Paul Bolding)