WASHINGTON (CNNMoney.com) – The Obama administration on Monday will formally unveil a program to help banks clean up their books by subsidizing private investors' purchase of troubled assets.
The effort marks the next big step in Washington's six-month-old bank rescue, which has so far mostly entailed making capital investments and backstopping bank debt.
Administration officials, in a briefing with reporters late Sunday night, said they plan to commit $75 billion to $100 billion to start wiping out bad assets and would evaluate how programs are working before deciding how to commit more money.
The goal is to buy up at least $500 billion of bad assets - loans, such as those for subprime mortgages, that are now in danger of default.
Investors have been waiting expectantly for details since last month when Treasury Secretary Tim Geithner announced the framework of a plan to address two of the biggest problems in the banking sector: the toxic assets keeping banks from lending and the shortage of capital at major institutions.
Go Obama! We are lucky to have a great president, after eight years of crooks and criminals.
lol, round and round we go, where do we stop? Obama knows! :D
Whatever works or might work, I say go for it! But then I'm sure the obstructionist Republicans will "just say no" since they don't any of them seem to know anything about economics...just their precious Repub Party and witch hunts. If they can't work on solutions soon, they can just kiss 2010 elections goodbye.
Another half-baked plan from Obama. The administration proposes punitive taxes on "the rich" then expects their "help". Don't expect the hedge funds to be a simpleton like the Obamabots.
At last a positive solution. Everybody (aka republicans) are shouting
what NOT to do but cannot or will not come up with a better idea. Of course that would take away all their fun.
Most American still wanna see some heads roll, and those can be upstairs or downstairs.
What I find saddened is how the news media is trying to stoke anger amongst Americans by putting the label taxpayers money. Taxpayers money has been used for just about everything in America from war down to Medicare, so why all of a sudden they want to underline taxpayer money. It's to get people mad and revolt against anything the Obama administration tries to put forth to combat this recession.
I must say that is sad and it's a dangerous game to be playing!
Hope it works, but who really knows. I thought monoplies were illegal? What is AIG? So big, so important, that we cannot let it go under. I still think this company should be allowed to collapse, put out of business, and for the ones that put us in this mess, well, maybe we could see them in a bread line!
These banks are so to blame for this mess.
At some point in time ,the government is going to realize that trying to buy our way out of debt,is not going to work,the country is just deeper in debt.The Chinese government has even ask us to stop" blowing "our money,yes even the Chinese government is more than concerned,because of their investments in the US.It's a shame and scary when the communist know more about our economy and what to do than the Obama administration.
I've got a feeing the stocks are going to rally big tie today.
I don't trust anything coming out of DC nowadays. Those democrats are not statesmen at all; they are all just poor politicians.
Unfortunately, I think this is a good move. It has taken a lot to get our housing market in the state in which we find ourselves. Now it will take a lot to get ourselves out of this mess. We also need to hold ourselves responsible.
Geithner is doing a fine job even though he has the whole world on his back,
All these talking heads can do is criticize and complain with no answers. Let the man work so this economy can get fixed!