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Subject Geithner and Fed "Reverse" wants a a government-backed “aggregator bank to fix troubled securities at banks_Bankers More money mo money

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[quote:Anonymous Coward 376718:MV83MTM4OTNfMTA5NDA1ODNfNjlGRDhBOTU=]
the second $350 billion of the Troubled Asset Relief Program, released by Congress earlier this month, may not be enough to shore up lenders and pull the economy out of recession.

Lawrence Summers, director of the White House National Economic Council, said yesterday those funds would get the rescue plan started, while Vice President Joseph Biden and House Speaker Nancy Pelosi both said there may be a need for more money later.

“The president has made clear that our administration is going to be leaning forward, that we’re going to be proactive and that he is prepared to do what is necessary,” Summers said yesterday on NBC’s “Meet the Press.” “What ultimately will be necessary is something that will play out over time.”

More Funds

Appearing on the CBS program “Face the Nation,” Biden said Geithner, once confirmed, “will then report back to the president and me as to whether or not he thinks” the remaining TARP funds are sufficient.

Majority Leader Harry Reid last week said he wants the full Senate to consider Geithner’s nomination today around 6 p.m. His likely confirmation will be followed by nominations for other senior Treasury posts
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Original Message Geithner to Press Mortgage, Bank Relief in Growing Rescue Plan

Jan. 26 (Bloomberg) -- President Barack Obama’s financial rescue plan will be unveiled soon and is likely to be larger and more ambitious than originally planned as the economy and banking system worsen.

The last procedural roadblock is set to be removed today, congressional Democrats said, when the Senate confirms Obama’s choice for Treasury secretary, Timothy Geithner, who will speed the rescue program out the door

Credit Losses

U.S. banks are reluctant or unable to lend after suffering more than $700 billion in writedowns and credit losses since the collapse of the subprime-mortgage market in 2007. The slump in lending, even after the government has pumped billions into the nation’s banks, is exacerbating the downturn.

Administration officials are considering several options to shore up the banking system, including direct capital injections in exchange for equity stakes, a solution favored by the Bush administration.

The Federal Reserve and Federal Deposit Insurance Corp. are advocating a government-backed “aggregator bank” to remove hundreds of billions of dollars of troubled securities from the balance sheets of lenders. Officials are also considering insuring losses tied to toxic assets to boost confidence in banks’ underlying strength.

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Fed "Reverse" take the money from you and give to them bankers

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