Bank Rescue Plan To Be Released Early Next Week: Treasury
WASHINGTON -- The Obama administration will release its much-anticipated plan to rescue the banking sector early next week, a spokeswoman for the Treasury Department said Monday. Fixing banks is considered a crucial first step to ending the severe recession. The Treasury secretary, Timothy Geithner, has been meeting with top bank regulators to work on the details of the plan. Geithner said last week that he does not want to nationalize banks as some commentators have suggested. The price tag of the initiative may be a bitter pill for Congress to swallow. Severe restrictions on executives may be the price for approval of the plans on Capitol Hill. Many economists believe the second half of the $700 billion plan won't be enough to fix the banks. Reports say the administration is considering a two-pronged approach to buy some toxic assets while offering guarantees against future losses on some others.
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