Results tagged “bankrescue”

Treasury Secretary Timothy Geithner didn't get the reception he was probably hoping for after revealing the new bank bailout plan that may involve $2 trillion: The Dow Jones Industrial Average has fallen over 300 points/almost 4% (at this point), and the S&P 500 has dropped over 4% and the Nasdaq is off by 3.54%. The main complaint: The lack of details. Asset manager Joseph Keating told Bloomberg News, "The lack of clarity [on the public-private investment fund] has the market upset. Nationalization could have been a better outcome for some banks.” Another investment strategist said, “Everybody is disappointed in the lack of details. They came out and said, ‘We want you to believe that we’re still working on this.’ Well, we knew that last night.”

Treasury Secretary Timothy Geithner is set to unveil the Obama administration's take on the bank bailout plan at 11 a.m. this morning. The NY Times reports that he "largely prevailed in opposing tougher conditions on financial institutions that were sought by presidential aides" (like David Axelrod) and "successfully fought against more severe limits on executive pay for companies receiving government aid. He resisted those who wanted to dictate how banks would spend their rescue money. And he prevailed over top administration aides who wanted to replace bank executives and wipe out shareholders at institutions receiving aid." And, still, stock futures fell! Politico has some of Geithner's prepared remarks: "Instead of catalyzing recovery, the financial system is working against recovery, and that’s the dangerous dynamic we need to change."