WASHINGTON (AP) - The Obama administration's latest attempt to tackle the banking crisis and get loans flowing to families and businesses will create a new government entity, the Public-Private Investment Program, to help purchase as much as $1 trillion in toxic assets on banks' books.
The new effort, to be unveiled Monday, will be followed the next day with release of the administration's broad framework for overhauling the financial system to ensure that the current crisis - the worst in seven decades - is not repeated.
A key part of that regulatory framework will give the government new resolution authority to take over troubled institutions that would pose a threat to the entire financial system if they failed. MORE.....
Does this mean that all of the money spent by the TARP plan was wasted?
The plan to buy up the toxic assets was the original plan that Shifty Paulson told us he was going to do with that money. And all of the experts told him it was a bad idea. Now Turbo Tax Geithner is about to unveil the same type of plan.
What really bothers me most is this bit about taking over troubled institutions that are to big to fail. What does that mean?
Habe you haeard any controversy about how Lehman Brother's CEO's are allowing big bonuses, or anything else about them? No. Why not? Because they were allowed to fail.