September 20, 2014
WASHINGTON (AP) - The details will apparently be released soon
on Treasury Secretary Timothy Geithner's plan to get toxic assets
of the books of struggling banks.
Administration and industry officials say the plan could be
revealed as soon as Monday.
Officials say the plan will use the Federal Reserve and the FDIC
to make the resources of the government's $700 billion financial
rescue fund go further.
Geithner is being forced to tap the Fed and the FDIC for
support. That's because the prospects for getting additional money
from Congress have dimmed in the wake of the controversy over
bonuses paid by firms getting bailout money.
Officials say one part of the plan would use the bailout fund to
create a public-private partnership to back purchases of bad assets
by private investors.
A key unknown is whether the new plan will succeed in attracting
private investors to start buying the bad assets.