Obama to Outline $30 Billion in Small Bank Assistance From TARP For Hiring New Worker

Discussion in 'Wall St. News' started by ASusilovic, Feb 2, 2010.

  1. Feb. 2 (Bloomberg) -- President Barack Obama will announce details today of a $30 billion plan to spur lending by community banks to small businesses using money from the financial bailout fund, administration officials said.

    In Nashua, New Hampshire, Obama will lay out his proposal to use money repaid to the Troubled Asset Relief Program to expand lending by as many as 8,000 banks to businesses ready to hire new workers, according to the officials, who briefed reporters last night on the condition of anonymity.

    “This will help small banks do even more of what our economy needs: ensure that small businesses are once again the engine of job growth in America,” Obama will say later today in Nashua, according to excerpts released by the White House.

    Obama and his economic advisers have said small businesses must be at the forefront of new hiring to reduce the nation’s unemployment rate, which the administration projects will average 10 percent through 2010. In addition to the new lending program, Obama has endorsed $33 billion in small business tax cuts and incentives for hiring and wage increases. He’s also supporting higher loan limits and guarantees through the Small Business Administration.

    Under the lending plan being announced today, which would be separate from TARP and require congressional approval, banks with assets from $1 billion to $10 billion could borrow as much as 3 percent of their risk-weighted assets, while banks with less than $1 billion in assets would get up to 5 percent of their holdings.


    Seems, Mr. Obama is tackling aggressively the unemployment problematic,or
  2. or he is setting the stage for the our second leg higher!

    A interesting fact is the funds could be guaranteed. More debt but initially a factor which could help the market to move higher.

    I hope we don't see those crazy fifty plus point moves in the NQ and ES out of no where.

    Last year the rally started in March I wonder if this year it is Feb?
  3. zdreg


    that is exactly what u can expect in a market manipulated by the gov't.