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.
NEW YORK (CNNMoney.com) - The "massive overhaul" of the banking bailout will be announced a day later than expected.
Treasury Secretary Timothy Geithner was originally scheduled to give full details about the changes to the rescue plan in a speech midday Monday. But the Treasury Department said Sunday that the plan will be announced Tuesday instead, in order for Geithner to focus on the stimulus bill that is being debated in the Senate.
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.
(CNN) – President Obama and Treasury Secretary Timothy Geithner announced plans to limit executive pay to companies that accept government bailouts.
Watch: Administration announces pay caps
Earlier: Obama officials reveal pay limits
Read Obama's full remarks after the jump
WASHINGTON (CNN) - In his first official move as treasury secretary, Timothy Geithner will unveil on Tuesday new rules to crack down on lobbyists for companies that benefited from federal bailouts, according to two senior administration officials late Monday.
WASHINGTON (CNN) – The Senate Finance Committee voted 18-5 Thursday to send the nomination of Treasury Secretary-designate Timothy Geithner to the full Senate.
Geithner apologized to the committee during his confirmation hearing Wednesday for his past failure to pay more than $34,000 in self-employment taxes between 2001 and 2004.
NEW YORK (CNNMoney.com) – Treasury Secretary-designate Tim Geithner called for bold action to blunt the economic downturn and promised to tighten the terms for companies getting federal financial help.
In prepared remarks to be delivered Wednesday morning before the Senate Finance Committee, Geithner called on senators to support the Obama administration's $825 billion stimulus plan. The comments come as the Senate panel prepares to consider whether to confirm Geithner as the nation's top financial officer.
"Senators, the ultimate costs of this crisis will be greater, if we do not act with sufficient strength now," Geithner's testimony read. "In a crisis of this magnitude, the most prudent course is the most forceful course."
WASHINGTON (CNN) - Stuart Levey, a top Bush official, has agreed to stay on as acting Treasury Secretary if current Secretary Henry Paulson's successor is not confirmed by the Senate by Inauguration Day, a source close to the transition said Wednesday.
The bureaucratic move is significant because the confirmation of President-elect Barack Obama's designate for Treasury secretary, Timothy Geithner, has hit a snag over his failure to pay $34,000 in federal taxes several years ago.
Democratic officials said they remained confident that Geithner's nomination will not be derailed, but acknowledged that an acting Treasury secretary may need to take the job because Republican questions could delay the confirmation beyond Inaugural Day.
Levey, the Treasury Department's undersecretary for terrorism and financial intelligence, would be thrust into the spotlight if he gets the job. The Treasury Department is in the middle of a controversial debate among Congress and the ingoing and outgoing administrations about how the next $350 billion in bailout funds are to be spent.
WASHINGTON (CNN) - President-elect Barack Obama defended his Treasury Secretary-designate Tim Geithner on Wednesday amid reports that Geithner failed to pay the correct amount on his taxes for a time and employed a housekeeper whose work authorization had expired.
Watch: Obama defends Geithner
Obama told reporters he did not think the controversy would jeopardize Geithner's confirmation. "Tim Geithner, when I nominated him, was rightly lauded by people from both sides of the aisle, from the market, from labor, as somebody who was uniquely qualified."
Obama said it was an embarrassment for Geithner, president of the Federal Reserve Bank of New York, but called it "an innocent mistake."
"It has been corrected. He's paid the penalties. ... So, my expectation is that Tim Geithner will be confirmed. And my expectation is that he is going to do an outstanding job on behalf of the American people," he added.
Geithner received immediate backing from Republican Sen. Lindsey Graham of South Carolina, who met with Obama on Wednesday.
Geithner "has a great resume," Graham said. "I don't see any desire by the Republican Party to play 'gotcha' on something like this. We need a new secretary of the treasury who understands where this country is at financially and has a game plan to move forward. I think he's the right guy."
But other Senate Republicans are demanding more answers on the issue.