WASHINGTON, Feb. 10 (Chinese media) -- The Obama administration will unveil a three-pronged rescue program that may commit up to 1.5 trillion dollars in public and private funds, The Washington Post reported.
Treasury Secretary Timothy F. Geithner will not ask Congress for more funds than the roughly 350 billion dollars that remain in the Treasury Department's original rescue package for the financial system, the report said.
But congressional sources said such a request could come later if the new programs are unsuccessful, adding the rest of the money would come from other government agencies, such as the Federal Reserve, as well as from private-sector contributions.
The report quoted officials and congressional sources as saying that Geithner will announce a public-private partnership that would seek to finance the purchasing of toxic bank assets that are at the heart of the credit crisis.
These sources briefed by Treasury officials said the program may initially raise 250 billion dollars to 500 billion dollars in public and private funds to offer low-cost financing to encourage investors to buy toxic assets.
A second initiative will broaden the scope of a Federal Reserve program aimed at unclogging the markets for auto, student and other consumer loans.
"That initiative may expand to as much as 1 trillion dollars, using 100 billion dollars from the Treasury's rescue funds, and includes aid for commercial real estate markets," the report said.
A third program will offer direct help to the nation's largest banks. The government plans to conduct a review of major financial firms to determine how much they may need. Any federal aid would come with conditions that would give the firms incentives to pay the money back as soon as possible. The review would determine the ultimate price tag of this program.
Special Report:Global Financial Crisis
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