Tuesday
Feb102009
Geithner: Man of the hour
Tuesday, February 10, 2009 at 5:54PM
by Christina Lovato, University of New Mexico-Talk Radio News Service
Today after the trillion dollar stimulus package passed, Timothy F. Geithner, Treasury Secretary, addressed the issue of a Financial Stability Plan that he is proposing to establish. Geithner said “One reason why this crisis is so damaging and has become so acute is because we did not move soon enough to recognize scale of risks this country faced and put together a comprehensive program.”
The plan includes a Capital Assistance Program which includes a “stress test” for the financial institutions. It would require an assessment of whether these institutions have the capital necessary to continue lending money. It also includes a public/private Investment Fund which would be utilized by public financing to leverage private capital.
The public would have access to view where this money would be going to and to whom as well. It is called the “Taxpayers’ Right to Know.” All of the information reported to Treasury by recipients of capital assistance will be posted on a website called financialstability.gov. “The American people will be able to see where their tax dollars are going and the return on their government’s investment. They will be able to see whether the conditions we placed on banks are being met and enforced. They will be able to see whether boards of directors of institutions receiving assistance are being responsible and careful with taxpayer dollars and how they’re compensating their senior executives.” said Geithner.
Geithner also stated that this lending program will be built on the Federal Reserve’s Term Asset Backed Securities Loan Facility, which was announced last November, with capital from the Treasury and financing from the Federal Reserve.
Today after the trillion dollar stimulus package passed, Timothy F. Geithner, Treasury Secretary, addressed the issue of a Financial Stability Plan that he is proposing to establish. Geithner said “One reason why this crisis is so damaging and has become so acute is because we did not move soon enough to recognize scale of risks this country faced and put together a comprehensive program.”
The plan includes a Capital Assistance Program which includes a “stress test” for the financial institutions. It would require an assessment of whether these institutions have the capital necessary to continue lending money. It also includes a public/private Investment Fund which would be utilized by public financing to leverage private capital.
The public would have access to view where this money would be going to and to whom as well. It is called the “Taxpayers’ Right to Know.” All of the information reported to Treasury by recipients of capital assistance will be posted on a website called financialstability.gov. “The American people will be able to see where their tax dollars are going and the return on their government’s investment. They will be able to see whether the conditions we placed on banks are being met and enforced. They will be able to see whether boards of directors of institutions receiving assistance are being responsible and careful with taxpayer dollars and how they’re compensating their senior executives.” said Geithner.
Geithner also stated that this lending program will be built on the Federal Reserve’s Term Asset Backed Securities Loan Facility, which was announced last November, with capital from the Treasury and financing from the Federal Reserve.
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