March 23rd, 2009
04:00 PM ET
9 years ago

Reid says Geithner plan could be risky

Senate Majority Leader Harry Reid said action is necessary to free up credit.

Senate Majority Leader Harry Reid said action is necessary to free up credit.

WASHINGTON (CNN) - Senate Majority Leader Harry Reid said Monday the Treasury Department's plan to rid banks of toxic assets carries "the potential for both risk and reward."

But he said the risk of using public money to buy troubled assets is outweighed by the need to act quickly to get credit flowing again.

"The Treasury Department plan is based on the sound principle that if we are to revive our economy, we must unfreeze the credit markets so people can get the loans they need to keep their small businesses open, buy a car or send their children to college," Reid said in a statement.

"Like any investment, this plan carries the potential for both risk and reward. But above all, we must act – one risk we will not take is standing on the sidelines and doing nothing while a bad situation gets worse."

Filed under: Harry Reid • Timothy Geithner
soundoff (32 Responses)
  1. Mike in Kansas

    Fed Up

    The risk and rewards are pretty evenly split between investor and taxpayer.

    Got Plan?

    March 23, 2009 04:37 pm at 4:37 pm |
  2. nom deplume, esq.

    Boy, when Reid doesn't want his fingerprints on the plan he voted for, that is not a good sign. At least the republicans with no faith in it didn't vote for it. But Harry wants to have his cake and eat it too.

    Look for "I voted for the stimulus before I spoke against it" in the near future.

    March 23, 2009 04:42 pm at 4:42 pm |
  3. John

    This might be one of those things that Biden warned us about. At first, it won't seem apparent that Obama's approach makes sense.

    March 23, 2009 04:43 pm at 4:43 pm |
  4. nom deplume, esq.


    How exactly did McCain and Gramm get that legislation into law? Did they hold a gun to Bill Clinton's head??? Last time I checked, it was his signature on the engrossed copy. And look at the list of Democrats that voted for it. Is that Dodd and Frank???? Mercy!!!

    March 23, 2009 04:44 pm at 4:44 pm |
  5. Had It

    CNN – he said either. Why do you all always put a Negative Slant on your headlines. You're ticking-off a lot of people out here. Just report the news and let US DECIDE.

    March 23, 2009 04:45 pm at 4:45 pm |
  6. Mike Syracuse, NY

    @Tom March 23rd, 2009 4:29 pm ET
    All the other aspects of the financial rescue package which were rolled out over the last two months are also showing signs of being effective.

    You must watch different news than the rest of us. Every measure of the economy is worse now than when Obama took office. What 'signs' are you seeing that are invisible to everyone else?

    March 23, 2009 04:49 pm at 4:49 pm |
  7. Paul from Phoenix

    Reid is such a bum. He was totally opposed to this when Bush/Paulson were doing it. Now, he supports it.

    This guy is a major reason why our country is in such shambles. People of Nevada, get rid of this bum!

    March 23, 2009 04:52 pm at 4:52 pm |
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