February 6th, 2009
05:40 AM ET
6 years ago

Geithner unveiling new financial stability plan Monday

Timothy Geithner to unveil new 'Financial Stability' plan Monday.
Timothy Geithner to unveil new 'Financial Stability' plan Monday.

WASHINGTON (CNN)– Even as the Obama administration struggles to sell a massive economic stimulus plan, Treasury Secretary Timothy Geithner is planning Monday to unveil a separate financial stability plan that could cost hundreds of billions of dollars more to buy up troubled assets from banks and more broadly deal with the credit crunch and foreclosure crisis, according to two senior administration officials.

The officials are billing the move as a major reform of the so-called TARP federal bailout program that was created last fall to try and stabilize the financial system, but has come under withering criticism across the political spectrum.

"It will be an overhaul of the whole program," one senior official vowed about the package being put together Geithner and other top economic advisers to the President.

Officials said the goals of the new plan will include bringing new transparency and accountability standards to the TARP program, keeping people in their existing homes, and increasing lending to consumers and small businesses.


Filed under: Timothy Geithner
soundoff (29 Responses)
  1. Sammy

    Is that before or after he does his taxes for 2008?

    February 6, 2009 08:36 am at 8:36 am |
  2. Sam Sixpack

    Millions get fired and it is spun into another excuse for our "leaders" to steal our children's money. The only thing changing is the short list of rich people who get to keep the money stolen from YOU.

    February 6, 2009 08:40 am at 8:40 am |
  3. Veteran in Kansas

    Please remember whose leadership put us in this position. It took 8 years of poor policies, inaction and trickle down economics to put us here. It shall take time and money to repair the economy. And while this is aimed at regaining financial stability, it does not repair the economy, it does not create jobs, its simply repairs a tool so that cash flow can occur as is required.

    February 6, 2009 08:41 am at 8:41 am |
  4. Joy

    Maybe he should unveil a PLAN on AUDITING all White House Administration, Senate & Congress – with a LOT of the politician NOT paying their share of taxes incuding HIMSELF – he could probably collect some $$$ to fund the PORK included in the "Stimulus"

    February 6, 2009 08:42 am at 8:42 am |
  5. Laura, Boston

    The only stimulus bill that would help me now that my husband has been cut to a part time status is to give each American a check like the last time to help with bills and rent and to be able to buy food.

    I tried getting my car loan deferred for a month. What a laugh that was. I bet Americredit hired every heartless creep to answer the phones. Won't refinance, won't defer. Tell me what is a hard working couple to do?

    I know that the last stimulus check supposedly didn't help the economy but it helped us get by another dismal month. Does anybody else feel the same way?

    February 6, 2009 08:46 am at 8:46 am |
  6. S.B. Stein E.B. NJ

    Geithner's administration of the program can't be any worse than Paulsen did. With Paulsen, there was little to no consistancy of what was going to be done. I hope Geithner isn't as haphazzard and has less changes in direction.

    February 6, 2009 08:46 am at 8:46 am |
  7. Spiderweb

    It's refreshing to know that Geithner has a PLAN. Cost..no problem..if it will do more good than bad. The Republicans are a sad representation of a major party and 2 years from now those who are up for re-election better think ahead to tthat election day. Whether Republicans know it or not there is a silent majority among their party is contemplating on leaving such a hypocritical, ignorant, obseesed for power party!

    February 6, 2009 08:48 am at 8:48 am |
  8. Stacy from Leesburg, VA

    You have to hand it to the GOP. They keep screaming tax cuts and this is the same philopsophy that has sunk this country. They have a one-track mind. It is the acme of foolishness to repeat the same failed steps and expect different results. Their idea is "Heck, it may be broke, but why fix it?"

    February 6, 2009 08:50 am at 8:50 am |
  9. Terry

    "Geithner's administration of the program can't be any worse than Paulsen did"....President Obama appointed this tax evader because he helped Paulsen write the first bailout. Where has everybody been...think like taxpayers not hysterical politicians!

    February 6, 2009 09:04 am at 9:04 am |
  10. Happy with new President

    Maybe is not bad idea to audit all those rich people (mostly republicans) who got their money from Bush and Dick help (corporation who got federal contracts w/o competion,etc.).
    This way the deficit could sink a lot. Did ever somebody checked tax returns for Bush administration? Don't think so.

    February 6, 2009 09:06 am at 9:06 am |
  11. Anonymous

    in most pics ive seen of this guy, he always looks depressed

    February 6, 2009 09:06 am at 9:06 am |
  12. Judy from PA

    Yes Laura from Boston! I feel the same way. Why not give the money to the people! I am amazed at how the Democrats and Obama pretend to care about working people and families, but yet who are they giving the money to??

    February 6, 2009 09:06 am at 9:06 am |
  13. D. Affiliated

    We don't need to do anything that's going to slow down the decline in housing prices. I don't mind allowing people to stay in their homes, but what good does that do when homes are so outrageously priced that people can't afford them at the current price without government help (and couldn't afford them in the first place without those tricky loan schemes that those Wall Street crooks came up with, like introductory mortgages where people paid nothing except for a small percentage of the interest)? And what about people who've never owned a home, have a moderate income (above the national average), and want to be responsible home owners? Housing prices spiked due to manipulation by the financial markets and mortgage lenders, and this problem will not be solved until prices come down to where people can actually afford their homes on set, fixed mortgages with none of these adjustable rates, balloon schemes, etc. You know, when people can actually aford the house. That's why cutting the loan interest rate hasn't helped. The bottom line is, the homes cost way too much. Home values skyrocketed at a rate of between 20% and 30% per year (!) over the last 8 years, while the average income went up 3-5% per year (and people's real income actually went down). They need to come down to where they would be if they had risen at a rate that was consistent with inflation and the increase in people's income, the natural rate, not the manipulated rate.

    February 6, 2009 09:07 am at 9:07 am |
  14. The lonely Libertarian of Liverpool

    Free Micheal Phelps !
    If I say anything else I would be censored again by CNN.

    February 6, 2009 09:09 am at 9:09 am |
  15. dave g, minneapolis

    Where is the Change? Obama is nominating people who were lobbyists and is asking for "exemptions" to his rule about not using lobbyists. Now we get all of these apointees who didn't pay taxes and are in charge of the most complex tax code ever...they expect us and corporations to understand it, but they can't even get it right.

    Then I hear a Democrat spouting off about "those idiot executives" that took the TARP money and then still went on retreats...and what happened yesterday? ??!!! Obama flew on Air Force One -TO A DEMOCRAT RETREAT!!! talk about hypocrisy!!!

    If the government (Democrats or Republicans) want our support they better start waking up. To hear people say "oh, the pork in the new bill is insignificant because it is only a couple percent of the whole bill"...people need to realize that a couple percent of $1Trillion is still $10-30Billion dollars!!!

    Why isn't government holding themselves accountable????????

    February 6, 2009 09:23 am at 9:23 am |
  16. Wally

    @ happy with the new president...

    don't you think if there had been a problem with bush administrations' tax returns the media would have announced it as much as they hate him?

    February 6, 2009 09:31 am at 9:31 am |
  17. Baze

    I must say for a tax delinquent this dude does seem pretty money savvy.

    February 6, 2009 09:31 am at 9:31 am |
  18. Wally

    Enough stimulus; i want a sedative

    February 6, 2009 09:33 am at 9:33 am |
  19. Jani

    when will democrats stop blaming Bush and take some responsibility? This does not sound like the party of the future–just keep hammering at the past. Go back to Carter if you are so stuck in the past.

    February 6, 2009 09:33 am at 9:33 am |
  20. Just Trying to Help

    CNN, you are now referring to IRS tax evader Geithner's plan as "a financial stability plan." You don't know that the plan will be financially stable. Heck, his own taxes weren't financially stable.

    The correct way to report it is:

    Geithner's plan, which he refers to as a financial stability plan, is going to cost taxpayers billions more on top of Obama's trillion-dollar plan, which he claims will lead to economic recovery.

    Journalism 101.

    February 6, 2009 10:07 am at 10:07 am |
  21. CNN = AIPAC = NEO-CON

    agents of AIPAC and neo-cons are everywhere,

    including in CNN and other corporate media,

    in both parties of washington

    in the obama white house and most key decision making positions of the administration,

    in CIA and FBI and every intelligence institutions public and private,

    on wall street of course,

    in academia,

    in insurance industry,

    in legal institutions,

    in medical and pharmaceutical industry.

    trust me on this.

    try and hide from them the best you can

    if you dare to challenge their agenda.

    February 6, 2009 10:07 am at 10:07 am |
  22. yuri

    Extremes do not pay. Just a word of caution . If we over-reach the regulatory tactics, things may turn counter productive. Eventually, if things turn around, Dem's avuncular behavior towards the wall street may start being loathed. Hence, at that juncture, let the board of directors, share holders, and others decide on the CEO's compensation, making it an absolutely transparent deal about the use of corporate jets, out door meetings, and other contracts. In this regard I have to concur with Carly Fiorina's recent remarks. The Dems, I am sure, are cognizant of this.

    February 6, 2009 10:10 am at 10:10 am |
  23. Sniffit

    TEAR DOWN TICKETMASTER!!!!!!!

    February 6, 2009 10:12 am at 10:12 am |
  24. Joanne

    He can't even keep his own taxes straight. Putting him in office is like putting a fox in the hen house.

    February 6, 2009 10:13 am at 10:13 am |
  25. Death of America by Obama

    obama...........................do the right thing and get rid of this tax cheat......NOW.

    February 6, 2009 10:20 am at 10:20 am |
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