Obama administration unveils new bank plan

(AP) - The Obama administration launched a new effortMonday to end a paralysis in lending, saying it will team withinvestors to initially sop up to

WASHINGTON - (AP) - The Obama administration launched a new effortMonday to end a paralysis in lending, saying it will team withinvestors to initially sop up to half-trillion dollars of badassets from banks that have been reluctant to make loans toconsumers and companies.

In announcing the program, Treasury Secretary Timothy Geithnerpleaded for patience, saying that work to rehabilitate an industrywith such systemic problems must go forward despite "deep angerand outrage" over executive bonus payments.

Obama called the plan "one more critical element" in a multi-prongedeffort to revive the economy and said the depressed housing marketis beginning to show glimmers of hope.

Geithner said the new program will seek to harness governmentand private resources to purchase a half-trillion dollars of badassets off the balance sheets of banks and said he expectspurchases eventually could grow to $1 trillion.

advertisement | advertise on News 12

Trending Video

The website Glassdoor released its latest list of 1 Word on the Street: Best place to work
The theme for the event was “a community 2 School block party kicks off summer in Longwood
News 12 took to the streets to find 3 Word on the Street: Time travel
VIDEO: FedEx shipping operation in the Bronx 4 VIDEO: FedEx shipping operation in the Bronx
Word on the Street: Food addictions 5 Word on the Street: Food addictions

advertisement | advertise on News 12

Features

Furry Friends is a weekly segment on News Furry Friends

Furry Friends is a weekly segment on News 12 The Bronx nightside.

Sorry to interrupt...

Your first 5 are free

Access to News12 is free for Optimum, Comcast®, Time Warner® and Service Electric℠ video customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.

LOGIN SUBSCRIBE