Summers says private capital key to bank bailout --- Treasury ...announcement Tuesday

MarketWatch ^ | Feb. 8, 2009 3:06 p.m. EST | Ronald D. Orol, MarketWatch

[Ernest_at_the_Beach]

Treasury postponing new financial rescue plan announcement to Tuesday

WASHINGTON (MarketWatch) -- A key Obama administration official said Sunday that new, soon-to-be-announced financial measures by the Treasury will include creating incentives for the private sector to invest in troubled banks.

"It can't all be private capital, but with the right kinds of government guarantees and the right kinds of financing, strategic approaches, [Treasury Secretary Timothy] Geithner believes we can bring in substantial private capital," said Obama's chief economic advisor Lawrence Summers on Fox News Sunday.

One measure the Treasury is considering would create a "bad bank" or "aggregator bank" that would buy illiquid mortgage securities. It would be partly funded by some of the remaining money from the existing $700 billion Troubled Asset Relief Program fund, but the majority of the funds would come from the private sector, according to a Wall Street Journal report Sunday.

In addition to the creation of a bad bank, the Treasury plans to guarantee mortgage securities, provide new capital injections into financial institutions, help out troubled homeowners on the verge of foreclosure and expand a consumer lending program.

Geithner was scheduled to propose a "comprehensive" financial rescue plan Monday, but a Treasury statement Sunday said the announcement of such a program won't take place until Tuesday.

Summers said Obama and his team are instead concentrating on completing a massive stimulus package that is being debated in the Senate. "The desire right now is to keep the focus right now on the economic recovery program," Summers said. See full story on stimulus package.

Geithner's expected proposal to make new capital infusions into struggling banks would be an extension of an existing program,

[Ernest_at_the_Beach]

but it would come with subtle variations intended to include private capital.

[Ernest_at_the_Beach]

Afternoon news.

[Navy Patriot]

The reanimation of the Resolution Trust Corp. to enrich insider DemoRats and George Soros, as planned from the beginning.

[penelopesire]

What private capital(other than Russia,China and America’s enemies) want to buy into the next Banana Republic?

[Ernest_at_the_Beach]

Well that one seems to have worked out pretty well....this one looks pretty grim....

[Navy Patriot]

Well that one seems to have worked out pretty well

Ah, no, the RTC was used to force many healthy banks into receivership with undervalued property inventories.

Bought for cheap, the properties suddenly regained value and were sold for handsome profits for the new bank owners, almost always well connected DemoRats.

Just coincidence, of course.

[Bean Counter]

I’m not going to get too excited just yet, because this thing is held to ether with old bandaids and used bailing wire, and could fall apart at any minute. there’s no guarantee that they won’t lose House Democrats over this in Conference and be right back at square one.

Look at everything that happened just last week...we have been hearing about imminent passage of this monstrosity for days and it hasn’t happened just yet...

[richardtavor]

Definitely crack is being smoked at 1600 Penn. I wouldn’t give these bozos the change off my dresser...

[KarlInOhio]

Yeah, I'm going to put my money into an organization which the government is telling who to hire, how much to pay them and what to invest in. Sorry, I would rather invest my money in Madoff's fund than in a government bank.

[Lurker]

Treasury Secretary Timothy] Geithner believes we can bring in substantial private capital,"

Would this be the same Geithner who believed he didn't have to pay taxes on his World Bank income?

Next we'll hear he believes in magic Unicorns that crap Skittles.

L

[grey_whiskers]

I have a proposed logo for the Obama-Geithner Consortium (OGC).

What a coincidence, it's from FailBlog.org

Cheers!

[grey_whiskers]

Please see the link in my post #11 this thread.

Moderately not suitable for work.

Cheers!

[pepperhead]

Fail-oh-four (404) says that link is FAIL.

Houston we have HTML FAIL!

[grey_whiskers]

Crud.

Here (mildly not suitable for work, and I have been chastized already tonight for salacious images):

http://failblog.files.wordpress.com/2008/04/logodesignfail.jpg?w=400&h=648 Cheers!

[pepperhead]

LOL no HTML FAIL this time. ;)

[verklaring]

The following article is one explanation of the scam in question. It is the second half of the article. :

http://market-ticker.org/archives/779-The-Swindle-Continues.....html