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Geithner to revamp US bank rescue
10 Feb 2009
US Treasury Secretary Tim Geithner was this afternoon outlining his effort to revamp America's bank-rescue programme.
Sources say his plan will be a four-pronged attack on the credit crunch stifling American businesses and consumers:
• Create a "bad bank" to take $500 billion of toxic assets off the books of the other banks
• Expand to $1 billion a facility to lend to banks against the security of car, student, credit card and small business loans
• Spend $50 billion to prevent house reposessions
• Extend capital injections into banks in return for stakes that will gradually convert into shares.
