Financial Stability Plan
Tuesday, February 10, 2009 at 5:02PM Treasury Secretary Timothy Geithner today stated that "Critical parts of the financial system are damaged' and that "the financial system is working against recovery". Geithner unveiled the follow-up to the Troubled Asset Relief Program (TARP) by presenting a new Financial Stability Plan. The goal of the plan is to clean up banks balance sheets by removing toxic assets and allow credit to flow again to businesses both big and small as well as homeowners and the housing sector.
Geithner stated that all Government Financial Agencies will be involved in getting the economy back on track and that the Financial Stability Plan would be comprehensive and forceful. Transparency will be at the forefront of all Government action and can be reviewed and monitored at FinancialStability.Gov.
The plan will require banks to undergo a "Stress Test", will create a Publlic/Private investment fund to acquire toxic assets, committ $1 trillion to businesses large and small along with implementing a comprehensive housing program.