Treasury plan to rely on financial institutions: Times
President Barack Obama's plan to save the foundering US banking system will rely on investors in hedge funds, private equity funds and other financial institutions buying the contaminated assets that wiped out the capital of many banks, the New York Times reported Monday.
The daily, citing unnamed officials, reported that under the plan, the US government would guarantee a floor value for the assets as a way to overcome investors' reluctance to buy them.
Officials told The Times that the plan, aimed to reduce the need for immediate federal financing and relieve fears that taxpayers will pay excessive prices if the government takes over risky securities.
Treasury Secretary Timothy Geithner was to announce on Tuesday, said the report.
The Treasury plan also is expected to inject more capital into some banks and to give many homeowners relief from immediate foreclosures, the newspaper reported.
Obama plans to boost his economic stimulus package in a primetime television news conference late Monday.
Geithner on Tuesday will reveal detains of the Treasury Department's plan for the remaining 350 billion dollars of the so-called Troubled Asset Relief Program (TARP), which aims to prise open stuck US credit markets.