WASHINGTON (CNN) – Partnerships with the private sector - aimed at restoring the flow of credit to families and businesses– will be a key feature of an overhaul of the $700 billion financial bailout to be announced by Treasury Secretary Tim Geithner on Tuesday morning, according to a senior White House official.
The public-private par are expected to buy troubled assets that now clog banks' balance sheets and to provide incentives so banks will start lending again, the official said.
The plan will continue to rely heavily on companies injecting capital into banks, but it will require more from those companies, such as caps on executive compensation. The government also will boost monitoring to make sure those banks use the money to increase lending, the official said. The bailout, launched by the Bush administration, has come under fire for its lack of transparency.
The plan also will commit up to $100 billion of the program's remaining $350 billion to stem the tide of foreclosures, without seeking more money from Congress at this time, the official added.
The official also said the plan will significantly expand a Federal Reserve program aimed at unclogging lending to consumers and small businesses by widening the program to cover other types of loans, such as those for commercial real estate.
WOW......IT's amazing how CNN closes comments on the Obama press conference, where he jabs Biden....after only posting 21 OBama loving comments...yet refuses to post any anti-Obama....
I wonder why Sarah Palin, Bush, Steele...or any of the republicans get the 500+ remarks of ill will....."fair and balanced..." yeah, right....
If it walks like a thug, talks like a thug, threatens like a thug....well, we have a thug as president...who wants to take American's money under duress and replenish the coffers of thugs....
There is going to be a whole slew of Tony Soprano's out there draining this money into their own bank accounts.
I think it is terrific for banks to give out loans, but what about the people who are not sure about their jobs. If they know they are secured in their jobs and can take out a loan, well then our economy can start to grow, but until then we as American People are still skeptical.
I find it interesting that the goal is to 'loan' more to the public...there is a problem at this point with perception and trust. What is being done to address those issues? You won't have a borrower if you don't have the confidence in the package. This message can't be just national, it has to reach the locals to make a difference.
Simply re-regulating and cleaning the banking mess will get the nation on the road to recovery. Also I'd consider creating a preferred customer bank for people who play by the rules have perfect credit and make timely payments as a reward and offer great interest rates. Our system is designed to penalize instead of rewarding responsibility. We should be rewarding responsible nehavior.
"Obama: ‘Only Government’ Can Break Cycle of Job Loss, Economic Downturn." Spoken like an confirmed, devout Socialist. Guess he never heard of an honest free enterprise system or the "Republic for which it stands." Such goes the demise of what our forefathers gave their all to preserve, broken down by sheer ignorance................
How's this for a bailout plain Geithner-style? Stop paying your taxes!
You'll have plenty of money left and if the guy in charge of the treasury (of all people) doesn't have to pay his taxes then why should I?
Wat asad ! Those Republican who voted against the should be voted uit .How can u leave ur family without livelyhood and yet claim u rep.them Republicans in houise and senet had goodshare loot dat it does not matter how badthe Economy bleeds in thier eyes.
Word on the street is that Geithner will also announce that he successfully navigated Turbo Tax this year and he has completed his 2008 taxes. Good job Timmy.
At last somebody is at the top of the nation to care of ordinary people.
what a relief from 8 years of misary.
NO MORE BAILOUTS FOR BANKS AND WALL STREET! Give money directly to Americans with the instructions to pay off their mortgages and nothing else. Set up new guidelines for mortgages and bank loans for banks. This will allow a FRESH start for Americans instead of rewarding greedy banks who refuse to free up credit or loan money.
The money has to be in the hands of the people, all the people, before any turn around can happen. This plan will take more than a decade for it to filter down to the people who need it now, we must stop and re-think this bailout action. Here is a foolproof plan to instantly jump start the economy. Give every man, women, and child five thousand dollars, this equals 1 1/2 trillion that we are already spending in the bailout. It the peoples money, so give it to the people not the corporations that put us in this position. This money will make a real difference to all families. This plan will save our country instead saving a few industries.
Those bank execs whose companies that are going to get TARP funds must accept a salary cap. After all, the biggest reason is that banks and a lot of lenders worked hard to write mortgages that were almost guaranteed to fail, because they were very greedy. In fact, some at Countrywide were rewarded for writing mortgages with timebombs in them. The teaser rates to get people to get the mortgages was so low that it was easy to get them. Unfortunately, few really asked a lot of questions, or were lied to at the time
Now these mortgages have been exploding all over the country, and the fallout is disasterous. Those who helped creat this mess should not expect to be rewarded with huge paychecks and bonuses until those companies have repaid these funds and with interest.
I thought we had already done this in September. Oh that's right we had to give the UAW money so they could continue to make shoddy cars at inflated pices while their union executives play at their exclusive golf course. Election payback, you know.
Something has to be done as quickly as possible. Granted the Republicans took 8 years to put us in this mess and it's going to take some time to get out. That being said, we have to start somewhere and saving homes is a great start!
It is so refreshing to hear an intellegent President, who can answer the question completely, coherently and in depth for a change. I will miss the bumbling answers repeated frontwards and then backwards as though this reafirmed the shallow answers as a glimps into brillance. GW was a US joke and failure wrapped into a neat package.
I would suggest that the GOP get on board or we'll have plenty to talk about in 2 years!
Socialism........HERE WE COME!!
It amazes me how many people comment on what is good and bad about the bailout but a huge majority of them don't even own their own companies (yes plural), therefore they never had to make huge financial decisions based on projections and market flow.
People balancing your home budget doesn't compare. Let the people who are educated make the decisions.
I don't see how providing incentives to banks to start lending loans to consumers, who don't have the ability to pay it back, will help the banks or the economy at all. DEBT is a HUGE problem for consumers. As a matter of fact I could argue that the gov't should negotiate with banks who ask for a bailout, to start eliminating consumer debt (house, auto and student loans), by writing them off. The consumer will have a little, if not big, relief and can use whatever income they have (provided if they have a job) to start saving their money.
Otherwise, I see no benefit at all with this bailout program. It just helps the banks not the consumer. I hope the President succeeds in turning the economy around but the TARP was a bad program to begin with.
American business people would love to capitalize on the economy's fiscal disaster of the Bush Administration; untie their hands & let THE AMERICAN WAY go forth!!!!!!!!!!!!!!!! It just seems to me that the Republican party had no trouble donning ear plugs, dental adhesive & blinders for the past 8 years allowing the deaf, dumb & blind scenerio to play out until Bush left the Office & now suddenly they've aroused from their slumber & start expecting immediate miracles from President Obama. They held the Democrats power to stop the 'titanic" of destruction with bureaucratic bombardment to delay the blame on the current Administration. Now they are infesting the obvious plan with delay & particianship again! Imagine that! At this rate, the Republican party may be no more by the next Presidential election & for that they can take FULL responsibility because their hasn't been such a public display of transparent bipartician effort on the Democratic party to date.
Too bad most Americans aren't bright enough to understand the bailout and stim packages are different...
In other words... double the price
i think presdent barack's move to jolt the economy by his recovery package is a honest move to put americans back to work. it dose not have to be neccesarily perfect to do this. the world not only americans is looking up to the world's strongest politician to lead the way out or this crisis and president barack is doing just taht. we should give him some votes. here talking to the GOP's
Yes, but the bailout does NOT protect American jobs!!!!!!!
The democRATs pulled E-Verify out of the bailout package which would have forced employers to ONLY HIRE American citizens as part of the bailout.
Microsoft and democRATic billionare Bill Gates petitioned the government in January it increase the number of H1-B visas and then last week LAID OFF over 7000 American citizens.
If Obama and the democRATs would cut off H1-B visas, which allows 150,000 immigrants into this country, they could SAVE over 1 million U.S. jobs in just 6 months.
The democRATs are NOT for the American worker. If they were, E-Verify would have been in the bill and H1-B visas would be stopped.
i think presdent barack's move to jolt the economy by his recovery package is a honest move to put americans back to work. it dose not have to be neccesarily perfect to do this. the world not only americans is looking up to the world's strongest politician to lead the way out or this crisis and president barack is doing just taht. we should give him some votes. here talking to the GOP's. he will also need to address world peace with more diplomatic corps
What doesn't it include? Kitchen sink anyone??
It amazes me what gets posted on this server. I almost believe Americans don't think this way.
President Obama did not do a very decent job IMO except use his bully pulpit. He mumbled and spurted out robot answers when asked questions, especially about the stimulus bill.
His little antics of "we can have a discussion about ideologies, but.... I'll do what I want anyway." is nothing short of a joke to me.
In fact, he joked off that FDR could have never done wrong.
But, if AMERICANS actually learned their history, it was the medelling of Herbert Hoover from 1929-1932 and the NEW DEAL (even if some good programs came out of it) kept the unemployment rate over 20% from 1932-1939....
7 years of very high unemployment and the doubling of the government debt, because all they did was spend money.
It makes me wonder if the average person has a clue on what can transpire over the next 2 years, and guess what CNN bloggers.
YOU CANNOT BLAME THE REPUBLICANS ONLY.... you must blame the problem itself, not just a symptom...
A government that allows a private banking system to control the economy is to blame. If you laugh when you read this, I suggest you take the time to read up on it.