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Bank Rescue Plan To Be Released Early Next Week: Treasury



February 02, 2009 – Comments (2)

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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2 Comments – Post Your Own

#1) On February 02, 2009 at 12:58 PM, viconquest (51.73) wrote:

We'll see how much taxpayers get f---ed in the a** on this. Regardless, any plan will be welcome news for investors as uncertainty will be eliminated and a projectable price tag can be put on this whole banking fiasco.

Compensation cap is great; I know some experts are against this because it will reduce the talent pool in the finance industry, but what has all this talent given us the past few years? The bottom line is the finance industry provides unnecessary services and produces no real economic value (outside of lending, which a monkey could do) and takes an incredibly large portion of the pie.

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#2) On February 09, 2009 at 9:11 AM, andys2i (< 20) wrote:

Using Fannie and Freddie would mean the government giving more taxpayer dollars to the companies as an incentive to modify loans. Does this sound familiar? I don't see what the new plan is going to achieve. Ah well, lets wait till the details come out before passing final judgment.

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