Word: geithner
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...early February, Treasury Secretary Timothy Geithner, as part of his bank fix, said he will "stress-test" the nation's largest financial firms to find out which ones are fit and which ones are flatlining, and then apply the appropriate therapy - which we assume means anything from injecting capital to pulling the plug. By using a medical term, Geithner gave the impression that he had some fiscal electrocardiograph that could be strapped to banks to chart the strength of their accounts. But when it comes to a bank checkup, the actual test is far less scientific. (Read "Geithner's Challenge...
...Geithner hasn't detailed his test, other than that it won't be complete for another month. Worse, officials at the Treasury say the tests probably won't be made public. That will sort out the uncertainty that has driven the stock market down...
...Secretary Timothy Geithner’s recent proposal. The potentially $1 trillion vehicle would aim to combine public and private capital to buy toxic assets from banks. Though widely criticized in its eight days of life, the fund may succeed in attracting private investors—but only if Geithner offers more specifics to incentivize private financing and subdue historic antagonism between private and public sectors, which is traditionally worse in times of crisis...
...Geithner, fortunately, does not face this old-fashioned run on the bank. Yet cooperation from the private sector is just as crucial today as it was in 1933. Creating an effective public-private fund requires incentives for private investment, and incentives depend on specific terms. This is exactly what Geithner’s fund is missing and exactly why future Friedmans and Schwartzes might criticize Geithner for “absence of vigorous intellectual leadership...
...Both the 1933 panic and the current credit crisis yield the same message: strong, cooperative leadership from the Fed is the key to inspiring confidence in both consumers and major private sector actors. Like any executive action, this leadership demands rationale—a justification for others to invest. Geithner must look to the failures of his predecessors in order to succeed...