Word: plan
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...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...
...focus on complex securities based on bad loans, the bad loans themselves pose the greatest threat to banks' balance sheets, according to the Treasury department. Bill Gross, chief investment officer of the massive PIMCO bond firm who has been in conference with the government about participating in the plan, estimates the loans pose up to a $1 trillion problem for the banks, and the new program taps FDIC funds to get investors to buy those loans from the banks. Gross told CNBC today that he would participate in the plan...
...program launched last week to restart non-bank commercial lending [i.e., by helping investors buy securities backed by auto loans, credit card debt, etc.] would be expanded to provide funding for investors who want to buy certain kinds of mortgage-backed securities. The government's enthusiasm for the starter plan, known as "TALF," has outstripped market enthusiasm, but there is some life in it. The Federal Reserve has put up over a $1 trillion in potential lending already, though only $9 billion in deals have been done so far. Geithner did not provide details of the terms of the loans...
Lastly, Geithner got to the "Public Private Investment Fund" for the securitized assets now clogging the banks' books. The plan envisions creating five investment funds under five outside asset managers. Those managers will get dollar-for-dollar matching investments from the government to buy what were once triple-A rated toxic assets from the banks, and can apply for loans from the government to further leverage their purchases...
...strength of the three-part rollout is the advantages of one rubbing off on the others. In an example provided by the Treasury for the FDIC part of the plan, an investor could put up $6, get matching investments from the Treasury for another $6, then obtain loan financing of $72 from the FDIC. This would allow the investor to purchase a security with an $84 auction price (and a face value of $100). Again, Geithner did not provide details on the terms of those loans...