Geithner Says Bank-Rescue Plans May Reach $2 Trillion (Bloomberg)

[chill_wind]

Geithner Says Bank-Rescue Plans May Reach $2 Trillion (Bloomberg)


By Rebecca Christie

Feb. 10 (Bloomberg) -- Treasury Secretary Timothy Geithner pledged government financing for as much as $2 trillion of efforts to spur new lending and address banks’ toxic assets, seeking to end the credit crunch hobbling the economy.

“Instead of catalyzing recovery, the financial system is working against recovery,” Geithner said in unveiling the Obama administration’s financial-bailout overhaul in Washington today. “At the same time, the recession is putting greater pressure on banks. This is a dangerous dynamic, and we need to arrest it.”

Stocks slumped, led by financial shares, as investors expressed concern about a lack of specifics on plans for addressing the distressed assets choking banks’ balance sheets. Geithner warned today that it will “take time” for the administration’s strategy to bear fruit.

The main components of the Treasury’s package today are a joint public- and private-sector fund to buy as much as $1 trillion of illiquid assets and a $1 trillion program to supply new credit to consumers and businesses. The administration also will inject additional taxpayer funds into banks, imposing tighter restrictions that will include limits on dividend payments, acquisitions and executive pay.

“I want to be candid: this strategy will cost money, involve risk, and take time,” Geithner said today.

much more:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aEzPekVa3eEE&refer=home

[bdamomma]

1. damn that cheney and bush.

they broke everything.

[4lbs]

2. It reminds me of the SNL "Weekend Update" segment a few days ago.

They were talking about the MSM garb that Obama's stating "I screwed up" with regards to the nomination of Daschle and his tax issues, as some sort of weakness with Obama.

Seth Myers replied, "Wow. Is that all? That's it? Not much when you consider that the last guy in charge BROKE THE WORLD !"

[renate]

7. I missed that!

Thanks for the laugh--what a perfect line! :thumbsup:

[Cash_thatswhatiwant]

3. damn.

[vaberella]

4. I have nothing to say but I'm not surprised. n/t

[Seen the light]

5. Is this separate from Bush's bailout and now Obama's bailout?

Aren't we nearing the $4 trillion mark?

At what point is it too much?

I am horrible at economics, but these numbers scare me.

[TTUBatfan2008]

6. All I'll say is...

"Thanks" to the previous generations for screwing over younger Americans. My generation is, in a word, fucked. I consider myself very fortunate to have a job right now, but I know many other recent college grads can't get hired anywhere. Either you're overqualified to work hard labor or you're not experienced enough for a job that you were trained to do in school. And on top of this we're the ones who will be paying for this economic disaster over the next 30 years. As I said, thanks. :(

[Sebastian Doyle]

8. Hey Tim, here's some ideas......

1) If a bank played any role in the Wall Street Gambling Casino of the last few years, let them die. They deserve it.

2) If a bank gets most of their profit from credit card usury, let them die. They deserve it.

3) If a bank is owned or partially owned by Saudi Arabia, not a god damned penny for them. They have stolen enough from us as it is.

(Yeah Shitibank, I'm looking right at you.)

Support local banks and credit unions, not Wall Street vampires. Bail out the consumers, not the thieves and extortionists.

[slipslidingaway]

9. Geithner senate hearing today - 2:30 EST n/t