Word: geithner
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...stop the economy's deflationary spiral, President Obama and Treasury Secretary Tim Geithner need to get toxic assets off banks' balance sheets so the banks can start lending again. With much fanfare and after much delay, Geithner on Monday unveiled the details of the government's "public-private" collaborative plan to make that happen...
There was a lot at stake. When Geithner rolled out an initial version of the plan Feb. 10, the details were missing, the stock market tanked and his image went with it. To give his plan a chance this time, Geithner had to show private investors they could make money partnering with the government to buy troubled loans, and the complex securities based on them, from the banks. (Read "Plan to Buy Toxic Bank Assets Delayed Again...
Judging from the reaction of industry analysts and the market, Geithner succeeded Monday. The Dow Jones Industrials, led by financial stocks, rallied nearly 500 points, or more than 6%. Scott Talbott, the top lobbyist for the Financial Services Roundtable, said that while some information is missing there's probably enough for buyers to figure out whether it's worth risking their money. "It's not perfect," Talbott said, "But it is a workable framework...
Constructing a strong framework around the shakier parts of the program was the key. To that end, Geithner spent the first part of the press conference talking about all the other programs he and the rest of the federal government have so far unveiled: help with housing, consumer loans and stabilizing banks balance sheets with direct infusions of cash. When he finally rolled out the toxic asset plan itself - in three separate parts - he carefully packaged the shakiest component with ones the market was more likely to have confidence...
...grant the bonuses even after all the legislation Congress has passed to limit compensation to executives of the companies taxpayers have spent trillions of dollars bailing out. The GOP blamed Democratic ineptitude in the rush to pass too many bailouts; Democrats and Republicans alike said the Treasury Secretary Geithner has been asleep at the wheel; and the Obama Administration tried to refocus attention on the consensus point that Wall Street greed is the opposite of good. "In the end, this is a symptom of a larger problem - a bubble and bust economy that valued reckless speculation over responsibility and hard...