Highlights of U.S. Financial Stability Plan

WASHINGTON, Feb. 10 (Chinese media) -- U.S. Treasury Secretary Timothy Geithner on Tuesday delivered a speech on the Obama administration's comprehensive Financial Stability Plan. The following are some highlights of the speech:

TRANSPARENCY AND ACCOUNTABILITY

-- A new website, FinancialStability.gov, will be launched to detail where federal funds are going and whether they are succeeding in stabilizing the financial system and promoting new lending, including posting all contracts on the Internet.

-- The Treasury will require banks to show how government assistance will expand lending and how they intend to use taxpayer dollars.

　　STRESS TESTS

-- The Treasury, together with the Fed, FDIC and federal bank regulators will jointly develop the guidelines of "stress tests" to ensure the nation's largest banks can withstand a worsening economy. Those banks who fail the test will receive more capital injections from the government.

PUBLIC-PRIVATE INVESTMENT FUND

-- A new Public-Private Investment Fund will be created to provide government capital and financing to leverage private capital to buy up the "toxic assets" that are dragging down lending. This would allow financial institutions to cleanse their balance sheets while letting private sector buyers determine the price for previously illiquid assets.

UNFREEZING CREDIT MARKET

-- The Treasury and the Fed are creating a new consumer business lending initiative to leverage up to 1 trillion U.S. dollars to kick-start the secondary lending markets. And another 50 billion dollars will be committed to reduce monthly payments and establish loan modification guidelines for government and private programs.

-- The Financial Stability plan will also require all firms receiving federal funds participate in foreclosure mitigation plans to stem the housing crisis.

Special Report:Global Financial Crisis