Geithner outlines new financial rescue plan

February 10, 11:46 AMFirst 100 Days ExaminerKim McIntyre

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Treasury Secretary Timothy Geithner laid out the long term initiative to rescue the nation's troubled financial system.  Calling it the new Financial Stability Plan, Geithner  says the Government will partner with the private sector to try and stabilize the financial system and open up the flow of credit to families and businesses.  Geithner says his new plan will not seek additional money from Congress at this time.

Key points include:

• The government will support private sector businesses in buying bad assets from banks that now clog banks' balance sheets and keep them from normal lending.
• 100 billion dollars of the remaining 350 billion dollar bank bailout program will be used to stem the tide of mortgage foreclosures.
• The government will launch a comprehensive housing program that will bring down housing rates.
• The plan will inject capital into banks but will require caps on executive compensation.
• The government will also enhance their monitoring of banks to make sure they use the federal money to increase lending.
• Geithner says this plan comes with risk, it may have to change and adapt to what happens in the future, but he says the current challenge is more complex than our nation has ever faced.

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