Treasury to unveil new bank rescue plan Monday

MarketWatch ^ | Feb. 5, 2009 5:21 p.m. EST | Ronald D. Orol, MarketWatch

[Ernest_at_the_Beach]

Mortgage alteration program expected to be included in the costly package

WASHINGTON (MarketWatch) - The Obama administration on Monday will release its "comprehensive plan" to revitalize the financial markets, which is expected to include a new strategy to deal with banks' bad assets and a controversial new program to help troubled homeowners avoid foreclosure.

Secretary Timothy Geithner will unveil the plan in a speech on how Treasury will employ the second half of a $700 billion bank bailout package as well as other new programs to shock the financial markets out of the recession.

Treasury officials are considering a variety of options for use of the funds, including capital injections and the creation of a bad bank that could be used to buy illiquid mortgage securities from struggling financial institutions. Treasury could employ a program that would provide government guarantees of troubled assets by leveraging a small amount of bank bailout funds.

The plan is likely to include a variation of a mortgage mitigation proposal introduced last year by Federal Deposit Insurance Corp. Chairwoman Sheila Bair, said Senate Banking Committee Chairman Christopher Dodd, D-Conn.

"The FDIC proposal has gained some traction with the Treasury. Its stock as a proposal has clearly gained," said Senate Banking Committee Chairman Christopher Dodd, D-Conn. to reporters after a hearing on Thursday that examined how Treasury's used bank bailout funds.

FDIC's Bair has proposed using $22.4 billion of the remaining funds in the bank bailout package in a program to help troubled homeowners avoid foreclosure. Treasury is considering investing between $50 billion and $100 billion towards a foreclosure prevention proposal as part of its new plan for use of the second half of a bank bailout plan.

[Gene Eric]

>> Treasury to unveil new bank rescue plan Monday

“We need to double-down”

[Ernest_at_the_Beach]

fyi

[FlingWingFlyer]

I guess since billions from the last one can’t be accounted for, we might as well try again. Somebody is getting rich and it sure as hell isn’t the American taxpayer.

[Grunthor]

“Treasury to unveil new bank rescue plan Monday”

Great. How much more is this one going to cost our great-grandchildren?

[rabscuttle385]

*Ping!*

[rabscuttle385]

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[Ernest_at_the_Beach]

Well,...so much for a semi rational plan:

Democrats kill McCain's alternative stimulus plan

At least it was about half of what the DemonicRATS want to spend.

[DustyMoment]

ANOTHER one!!???

Gee, the FIRST one was such a roaring success!!!

/sarc

Let’s rescue the banks AND the economy all in one fell swoop by giving all this money to the people who actually PAID it (meaning NOT democrat politicians!)!!! Of course, that probably makes too much sense.

[St. Louis Conservative]

Yeah, that’s about right.

[Diana in Wisconsin]

Oh, Heck, Ernest! A little ‘’socialism’ disguised as ‘nationalism’ never hurt no one. *HURL*

[headstamp 2]

The federal government is completely out of control.

I’m talking “Mad as a Hatter” out of control.

[Ernest_at_the_Beach]

See this...Related thread:

Senator Warns White House Will 'Create Crisis and Widespread Panic' to Push Stimulus

[Ernest_at_the_Beach]

See link at #13.

[Doogle]

..THE US GOVERNMENT HAS LOST 78 BILLION DOLLARS...they don't know where it went on the first part of tarp. THE GOP should insist when they find that chunk of US tax payers dollars they will resume discussions about the present spending bill.

[RegulatorCountry]

Turbo Timmy is a criminal. Why do we pay taxes again?

[April Lexington]

Um... I’m confused. Does this rescue plan kick in before or AFTER the currency collapses???

[Diggity]

Another Day, another Plan.

[DustyMoment]

Senator Warns White House Will 'Create Crisis and Widespread Panic' to Push Stimulus

They can create all the crises they like - the fact is that Americans are so put off by the TARP program that, the more they learn about Obama's Porkzilla, the more they are telling theor Congresscritter "NO!!!"

[Las Vegas Ron]

Thanks for the Ping