Friday, February 6, 2009

Treasury to unveil 'comprehensive' bank rescue plan Monday

Treasury to unveil 'comprehensive' bank rescue plan Monday

By Ronald D. Orol

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Treasury Secretary Timothy Geithner on Monday will release his "comprehensive plan" to revitalize the financial markets, a Treasury spokesman said Thursday. Geithner is expected to explain how Treasury will employ the second half of a $700 billion bank bailout package as well as other program to shock the financial markets out of the recession. The plan is expected to include a variation of a mortgage mitigation proposal introduced by Federal Deposit Insurance Corp. Chairwoman Sheila Bair, according to Senate Banking Committee Chairman Christopher Dodd, D-Conn. Treasury officials are considering a variety of options for use of the funds, including capital injections and the creation of a bad bank that could be used to buy illiquid mortgage securities from struggling financial institutions.

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