11 Stories

Geithner to Europe: We're Not Lecturing

Treasury secretary in Poland to offer advice on debt crisis

(Newser) - As Europe continues to battle its debt crisis, Timothy Geithner has a suggestion. The Treasury secretary today called on euro zone officials to leverage the region’s roughly $600 billion bailout fund, an insider tells Reuters . Geithner didn’t provide details on how Europe should go about the move, nor... More »

Taxpayers Lose in Treasury's Toxic Asset Plan

Nobelist Stiglitz blasts Obama adminstration for 'perverse' program

(Newser) - The Obama administration's massive public-private investment plan is good news for banks, good news for investors—and bad news for the taxpayer, writes Joseph Stiglitz. In an op-ed for the New York Times, the Nobel Prize-winning economist accuses the Treasury of "replicating the flawed system" that caused this crisis,... More »

Don't Listen to Krugman— This Plan Might Work

Pearlstein lays into fellow columnist

(Newser) - Even before the full details were released, critics were bashing the Treasury's public-private asset purchase plan; Paul Krugman predicted it would fail and lead the country into depression (not to speak of the writer into despair). Steven Pearlstein begs to differ, and the markets seem to agree. For the Washington ... More »

Treasury Unveils $1T Plan to Clean Up Toxic Assets

Three-part program will push investors to buy toxic assets

(Newser) - The Treasury unveiled its three-part Public-Private Investment Program today, reports the Wall Street Journal. Under the program, up to $100 billion in TARP funds will be partnered with private investments to buy troubled assets. The Treasury, Federal Reserve, and FDIC will work with hedge funds and private equity to try... More »

Geithner: 'These Policies Will Work'

Treasury sec lays out $1T plan in op-ed

(Newser) - Tim Geithner caps a weekend of lobbying for the administration's $1 trillion Public-Private Investment Program in an op-ed for the Wall Street Journal, arguing that "the financial system as a whole is still working against a recovery." For the Treasury secretary, all the previous measures will fail... More »

Feds Look for Privately Funded $1T Bailout

Geithner talks up private capital ahead of today's announcement

(Newser) - The Treasury today unveils its three-part public-private plan to purchase $1 trillion in troubled assets, offering lucrative subsidies to private investors to encourage them to participate. The Obama administration spent the weekend wooing hesitant private investors—hedge funds, private equity firms, and sovereign wealth funds—who fear future regulation or... More »

Toxic Asset Plan to Offer Subsidies to Investors

Plan will offer loans, subsidies to investors willing to suck up bad assets

(Newser) - The Treasury will unveil a plan to take up to $1 trillion in mortgage-backed securities and other troubled assets from financial institutions early next week, the Wall Street Journal reports. The plan, the cornerstone of efforts to rescue the banking system, calls for the creation of an entity to buy... More »

'Massive' Asset Purchases Likely Loom for Bernanke

Fed expected to step up purchase of mortgage securities

(Newser) - The Federal Reserve is expected to step up its buying of mortgage securities after policymakers meet today and tomorrow, Bloomberg reports. The outlook for the economy and job market has gotten bleaker since the Federal Open Market Committee last met 6 weeks ago and analysts believe Ben Bernanke is likely... More »

Hedges, Private Equity Funds to Invest in Bailout

TALF program could see very rich outfits get even richer

(Newser) - With its highly touted TALF program to spur consumer lending, the government is undertaking a $1 trillion effort that hinges on the participation of some unpopular outfits: hedge funds and private equity firms. As the Washington Post reports, the Fed and Treasury's "public-private partnership" relies on investment from the... More »

Investment Funds May Replace 'Bad Bank'

Administration eyes creation of private funds to suck up toxic debt

(Newser) - The Obama administration is considering creating multiple investment funds to buy up the toxic debts at the heart of the financial crisis, insiders tell the Wall Street Journal. No fixed structure has been agreed upon, but under one leading plan the funds would be administered by private investment managers who... More »

Credit Crunch Pinches Entire Lending System

Undercapitalized banks stand to benefit from $1T infusion

(Newser) - Banks aren’t lending, and to change that the government is propping up not just the banks but also the vast, largely unseen financial system that fuels them, the New York Times reports. Banks rarely keep the loans they make anymore; instead, debt is packaged into securities and sold, generating... More »

11 Stories