Geithner unveils 3-point bailout plan
11-02-2009
The US Treasury Secretary, Timothy Geithner, has unveiled a three-part programme to stabilize the financial system. He said the government would use all of its powers to strengthen the financial system to get the economy back on track. A key element would be a public-private investment fund, starting with 500-billion dollars, to help cleanse the banking system of toxic real-estate assets. The second part would include additional capital injections into banks. The third element would see Treasury and the Federal Reserve expand a programme to boost lending for mortgages and other consumer and business loans to up to one trillion dollars. The US central bank, in coordination with Treasury, said it was preparing a substantial expansion of a programme announced last year to get more credit flowing. This would see the fund expanding to one-trillion dollars from the previously announced 800-billion dollars.
