Geithner’s Toxic Asset Plan: Wall Street Finally Cheers
Tuesday, March 24, 2009 : PermalinkTime.com – To stop the economy’s deflationary spiral, President Obama and Treasury Secretary Tim Geithner need to get toxic assets off banks’ balance sheets so the banks can start lending again. With much fanfare and after much delay, Geithner on Monday unveiled the details of the government’s "public-private" collaborative plan to make that happen.
There was a lot at stake. When Geithner rolled out an initial version of the plan Feb. 10, the details were missing, the stock market tanked and his image went with it. To give his plan a chance this time, Geithner had to show private investors they could make money partnering with the government to buy troubled loans, and the complex securities based on them, from the banks.
Tags: assets, balance sheets, banks, collaborative plan, deflationary spiral, economy, fanfare, initial version, loans, money, obama, private investors, stake, stock market, treasury-secretary
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