These People Have No Shame- Geithner Set To Ask For Another $$$TRILLION$$$

[Orwellian_Ghost]

Feb. 8 -- President Barack Obama’s struggle to push an economic stimulus bill through Congress may seem easy compared to what he’ll encounter when he returns to Capitol Hill for additional funds to rescue the banking system.

Obama will likely need to ask Congress for more money to recapitalize banks, as much as $1 trillion on top of the roughly $300 billion remaining in the current Troubled Asset Relief Program, according to an estimate by former Federal Reserve economist Ward McCarthy. That will be an even tougher sell for the new president than the stimulus plan, which is headed for a Senate vote this week after passing the House with no Republican support.

<snip>

Geithner’s Speech

New steps to be outlined this week by Treasury Secretary Timothy Geithner will include fresh capital injections into banks and ways to deal with toxic securities still on their balance sheets, according to people familiar with the matter.



Treasury will probably propose a combination of buying toxic bank assets, providing guarantees for other assets, and making additional capital infusions to banks, said McCarthy, now a principal at Stone & McCarthy Research Associates, an economic research firm in Skillman, New Jersey.

“The remaining TARP funds are not going to be enough for the job,” said McCarthy, who estimates that up to $1.5 trillion in government aid will be needed to save the banking system. “If they want to get the job done, they will have to scrape up more cash,” said McCarthy.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aOIOHVbliZdQ&refer=home

[anonymous171]

1. Why don't we just nationalize them already? nt

[dgibby]

4. Great idea!

We could control the banks AND create jobs, 'cause we'll need to hire lots of people to clean conservatives' brains off the streets after their heads explode! It's a win-win: nationalize the banks,create jobs, get rid of conservatives! Yea!!!!:evilgrin:

[PVnRT]

2. Billions for banks, not one red cent for infrastructure

Why would we want to create jobs when we could just give tax money to banks to continue not loaning money and paying their executives millions?

[MH1]

3. I guess the thing to consider

is what happens if FDIC suddenly has to pay up on a s**tload of insured deposits?

I have no idea about this myself, and don't want to defend giving money to banks (especially with the non-oversight that happened with TARP), but I imagine there is a calculation of "lesser of the evils" happening here.

Or maybe, because anyone with over say, $10K in the bank is "filthy rich scum", the FDIC should just say, "aw sorry bout that, we were only kidding about that guaranteed deposit stuff"?

:sarcasm: <-- hopefully not needed, but included just in case.

[Donnachaidh]

10. so pay out trillions and STILL be on the hook for those insured deposits?

Oh yeah -- THAT'S the ticket. :sarcasm:

That little ticking time bomb is OKAY, is it? HAS there been ANY clause that makes the BANKS take up that *cost* when they take taxpayer money?

[chill_wind]

5. "Public relations makeover"--renaming the old bad shit to sell it

Morning Read
Meet The New Boss…
by Paul Kiel, ProPublica - February 9, 2009 11:33 am EST

This Tuesday, Treasury Secretary Tim Geithner will roll out TARP II, the administration's plan for how to spend the second $350 billion of the $700 billion bailout.

Geithner will do his best to convince the public that this isn't just a continuation of former Treasury Secretary Hank Paulson's bailout, but a brand new beast: The Wall Street Journal reports that the administration is "considering renaming" the program <1>, since the "Troubled Asset Relief Program" has yet to find its way to the public's heart.

Of course, despite the possible rebranding, the program seems likely to primarily rely on tools used, developed or considered by the previous administration.

The centerpiece of the plan, as presented by today's reports in the Journal and New York Times <2>, will be a program to buy banks' troubled assets, which was the original centerpiece of Paulson's plan. Both papers report that the Treasury wants to boost its purchasing power with the help of private capital, but the details remain so hazy that it seems more a desire than a plan.

the rest:

http://www.propublica.org/article/meet-the-new-boss-090209


A public-relations makeover. To improve the bailout's poor image, which owes partly to the shifting nature of the government's remedies, the administration is considering renaming the $700 billion Troubled Asset Relief Program and making it independent of the Treasury. The U.S. is going to announce new terms and conditions for companies that receive or have already taken government aid -- in addition to the new executive-compensation limits announced this week -- including a demand that they report how the money is being spent.

http://online.wsj.com/article/SB123404707960860295.html?mod=rss_Page_One

[Romulox]

6. The last TARP was an abject failure. We have GOT to fight more giveaways to Wall Street. nt

[hedgehog]

7. This time - send the money to the people directly. I for one would use

it to pay off some outstanding debts, which will get hose debts off the books at the bank. The goal is to get money circulating, not to let it set on some bank's books!

[Dawgs]

8. Your headline is misleading. It's some economists opinion, not from anything factual.

:shrug:

[Orwellian_Ghost]

11. Here ya' go

Geithner Says U.S. Financial System Badly Damaged, Needs Aid

Feb. 10 (Bloomberg) -- Treasury Secretary Timothy Geithner said the U.S. financial system is badly damaged and needs more government help to avoid a collapse that could devastate an already battered economy.

“The financial system is working against recovery, and that’s the dangerous dynamic we need to change,” Geithner said in remarks prepared for delivery today at a speech in Washington. “Without credit, economies cannot grow, and right now, critical parts of our financial system are damaged.”

In the speech, Geithner lays out the administration’s overhaul of the $700 billion bank rescue plan it inherited. He acknowledged that “the American people have lost faith in the leaders of our financial institutions” and are skeptical of the rescue spending so far.

The Obama administration’s strategy has three main components: more capital for banks, financing for as much as $1 trillion of consumer and business loans, and public financing for private investors willing to buy distressed assets, people familiar with the plan said.

“This comprehensive strategy will cost money, involve risk, and take time,” Geithner said. The initial bailout effort, which he helped administer in his previous job as head of the Federal Reserve Bank of New York, was “essential” and also “inadequate” to support the financial system and the secondary lending market, he said.

<snip>

http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=ar9DJY_76OuA

[sattahipdeep]

9. Schapiro

Schapiro is currently the head of the Financial Industry Regulatory Authority, the largest non-governmental regulator for securities firms doing business with the public. Before that, she served as chairman of the Commodities Futures Trading Commission and six years as a member of the SEC.

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01:02:39 REP.SHERMAN

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01:05:36 MARKOPOLOS

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http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=385&topic_id=269332&mesg_id=269727