Summers: Private capital key to new bank bailout program

Discussion in 'Wall St. News' started by ASusilovic, Feb 8, 2009.

  1. A key Obama administration official said Sunday that new, soon-to-be-announced financial measures by the Treasury will include creating incentives for the private sector to invest in troubled banks. "It can't all be private capital, but with the right kinds of government guarantees and the right kinds of financing, strategic approaches, [Treasury Secretary Timothy] Geithner believes we can bring in substantial private capital," said Obama's chief economic advisor Lawrence Summers on Fox News Sunday. One measure the Treasury is considering would create a so-called "bad bank" or "agregator bank" that would buy illiquid mortgage securities. It would be partly paid for by some of the remaining funds from the existing $700 billion Troubled Asset Relief Program fund, but the majority of the money would come from the private sector, according to a Wall Street Journal report Sunday.

    http://www.marketwatch.com/news/sto...77-E41B-461D-8C48-F6D319F1B635}&dist=hplatest

    LMAO ! Good luck !
     
  2. Ribs

    Ribs

    don't be so quick

    this could be more than BAD

    think chinese and russians or god forbid Saudis

    they could do it just to own a piece of US ass

    for later bad bad things, that bump in the night