Feb 11, 2009
| Last Updated
On February 10, Treasury Secretary Timothy Geithner presented the administration’s Financial Stability Plan to deal with the financial system’s toxic asset overhang and ease, if not reverse, the ongoing decline in bank lending to households and corporations. Out of the three broad options available - including nationalization, ‘good / bad bank’, backstop guarantee on ring-fenced toxic assets - the administration plan offers elements of all three.
The first program involves a mandatory ‘stress test’ for all banks with $100 bn-plus assets which should also shed some clarity[...]
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