WASHINGTON (AP) - Treasury Secretary Timothy Geithner says, right now, the nation's financial system is working against an economic recovery. And he says that's a "dangerous dynamic" that needs to be reversed.
Geithner unveiled the Obama administration's overhaul of the federal financial rescue this morning, saying critical parts of the system are damaged.
Officials say the new plan would greatly expand the effort to unclog credit markets that provide loans to consumers and businesses, increasing funding from $20 billion to about $100 billion. That would be enough to support an additional $1 trillion in lending support through a Federal Reserve program that was announced in November but is not yet operational.
The program also would provide aid to the commercial real estate sector and create a partnership between the government and the private sector to buy up bad assets that are weighing down bank balance sheets.
(Copyright 2009 by The Associated Press. All Rights Reserved.)