GOOD News for a change: Geithner is overhauling the second half of the TARP bailout!

[backscatter712]

This was originally in LBN, but certainly worth reposting here.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3681174

http://www.washingtonpost.com/wp-dyn/content/article/2009/01/08/AR2009010804109.html?hpid=topnews

Geithner Preparing Overhaul Of Bailout
Obama Team Broadens Scope to Secure Final $350 Billion for Rescue

By David Cho
Washington Post Staff Writer
Friday, January 9, 2009; Page A01

Confronted with intense skepticism on Capitol Hill over the $700 billion financial rescue program, Treasury Secretary nominee Timothy F. Geithner and President-elect Barack Obama's economic team are urgently overhauling the embattled initiative and broadening its scope well beyond Wall Street, sources familiar with the discussions said.

Geithner has been working night and day on the eighth floor of the transition team office in downtown Washington with Lawrence H. Summers and other senior economic advisers to hash out a new approach that would expand the program's aid to municipalities, small businesses, homeowners and other consumers. With lawmakers stewing over how Bush administration officials spent the first $350 billion, Geithner has little chance of winning congressional approval for the second half without retooling the program, the sources added.

That challenge is underscored by a report from a congressional oversight panel scheduled to be released today that hammers the outgoing Treasury Department for its handling of the financial rescue, including "what appear to be significant gaps in Treasury's monitoring of the use of taxpayer money." The report, moreover, faults the Treasury for failing to properly measure the success of the program or establish an overall strategy and skewers the department for not using any of the funds on foreclosure relief as Congress had directed.

Much of the work by Obama's team has focused on establishing principles that would clearly define the program's course and the conditions of government aid to financial firms.

Very nice indeed. So on top of the 750 billion dollar stimulus package in the works, he'll have 350 billion from the second half of TARP that might actually go to something other than building helipads for bank executive's yachts.

Yeah, I'm encouraged.

[Zynx]

1. Geithner is not the villain people try to make him out to be.

He's really tried to make the best out of a bad situation. Frankly, the Fed has prevented total disaster during this mess. For all of the potential of very real disaster, the crisis is managable.

[backscatter712]

2. I'll feel better in 11 days...

When the adults are formally in charge. Thankfully, it looks like Bush and Paulson have finished most of their shenanigans with the first half of TARP, and the second half will be doled out under the Obama administration, with Congressional consent, meaning no more blank checks to cigar-smoking CEOs. A good chunk of that money is likely to help out actual homeowners who are being burned by bad mortgages.

[FrenchieCat]

3. That will add to the stimuli....because folks are bleeding, and losing their homes.....

and no matter what else is done, if this is not gotten under control, our problems will not ever end....as it is one of the big part of why our economy is in the downward spiral that it is in.

[anigbrowl]

4. Agreed. I think there's just a lot of freaking out about ANYONE connected with pillars of finance.

99% of the criticisms I've seen made on DU about people at the Fed are devoid of any actual substance, people just want to lash out. Understandable, but not useful.

[Zynx]

5. And they really don't know a damn thing about monetary policy either and they just

lash out. I hate that so much.

[Romulox]

8. The TARP was not an instrument of "monetary policy". It was a taxpayer handout to Wall Street

with no strings attached.

Attempt to obfuscate all you like, however. :hi:

[anigbrowl]

9. TARP = Treasury program. We are talking about the Fed. Thanks for proving my point.

[Romulox]

10. Errr.... "Geithner is overhauling the second half of the TARP bailout!"

Sorry to go off topic.

:crazy:

[backscatter712]

6. /me rereads what he wrote last night...

Yeah. Geithner's already sounding like he's a big improvement over Paulson. He's actually been busting his butt going through the records and coming up with a detailed new plan for the bailout money that's far saner than "Throw it at the banks - they'll be good, we promise!"

Some of that money may actually reach individual homeowners who've been burned by the housing meltdown. Some of it may be lent to small businesses - that will stimulate the economy a decent amount.

[Zynx]

7. I think Geithner will prove his critics on DU wrong.

Frankly, I don't know who they wanted. It almost sounded like they wanted Ron Paul.

Geithner has had to deal with an utter mess at the New York Fed and all things considered he has done a great job. I would love to see what some of the "experts" here would have done in the same position. My guess is that they would be in a soup line right now asking why the Fed didn't do more to save the banks.