Treasury Secretary Timothy Geithner is expected to announce that the government will use private-sector partners to purchase banks’ troubled assets, reports the WSJ. The plan for a so-called aggregator bank, a variation on a theme that Obama administration officials have wrestled with for weeks, is among four key components of Geithner’s bailout revamp, to be announced Tuesday. The administration’s plan includes fresh cash injections into banks; new programmes to help homeowners; a significant expansion of a Fed programme to jump-start consumer lending; and the mechanism to allow banks to get rid of bad assets.

This entry was posted by Gwen Robinson on Monday, February 9th, 2009 at 5:43 and is filed under Capital markets, People. Edit this entry.