Obama administration unveils new bank plan

(AP) - The Obama administration launched a new effortMonday to end a paralysis in lending, saying it will team withinvestors to initially sop up to half-trillion dollars of badassets from banks that have

News 12 Staff

May 27, 2014, 9:44 PM

Updated 3,654 days ago

Share:

Obama administration unveils new bank plan
(AP) - The Obama administration launched a new effortMonday to end a paralysis in lending, saying it will team withinvestors to initially sop up to half-trillion dollars of badassets from banks that have been reluctant to make loans toconsumers and companies.
In announcing the program, Treasury Secretary Timothy Geithnerpleaded for patience, saying that work to rehabilitate an industrywith such systemic problems must go forward despite "deep angerand outrage" over executive bonus payments.
Obama called the plan "one more critical element" in a multi-prongedeffort to revive the economy and said the depressed housing marketis beginning to show glimmers of hope.
Geithner said the new program will seek to harness governmentand private resources to purchase a half-trillion dollars of badassets off the balance sheets of banks and said he expectspurchases eventually could grow to $1 trillion.


More from News 12
0:56
Turn to Tara Exclusive: Lead prosecutor took free vacation at Robert Durst's wife's home

Turn to Tara Exclusive: Lead prosecutor took free vacation at Robert Durst's wife's home

1:49
Sunny skies and warm temps for Tuesday in the Hudson Valley

Sunny skies and warm temps for Tuesday in the Hudson Valley

1:35
Questions swirl as Tuckahoe mayor declares new Ossining home her primary residence

Questions swirl as Tuckahoe mayor declares new Ossining home her primary residence

1:10
Rockland County family among those injured in fatal Singapore Airlines turbulence incident

Rockland County family among those injured in fatal Singapore Airlines turbulence incident

1:50
Proposed NY bill would give certain inmates up to $2,550 in taxpayer money upon release

Proposed NY bill would give certain inmates up to $2,550 in taxpayer money upon release

0:32
Early morning shooting in Monticello leaves 1 dead, 1 hospitalized

Early morning shooting in Monticello leaves 1 dead, 1 hospitalized

0:18
Two Hudson Valley students head to 2024 Scripps National Spelling Bee

Two Hudson Valley students head to 2024 Scripps National Spelling Bee

1:14
Crash victim airlifted to hospital after veering off Palisades Parkway and down embankment

Crash victim airlifted to hospital after veering off Palisades Parkway and down embankment

0:24
Appalachian Trail at Bear Mountain State Park reopens after yearlong closure

Appalachian Trail at Bear Mountain State Park reopens after yearlong closure

2:17
Made in the Hudson Valley: Tarrytown's Main Street Sweets celebrates 25 years of homemade ice cream

Made in the Hudson Valley: Tarrytown's Main Street Sweets celebrates 25 years of homemade ice cream

1:01
Headlines: Woodbourne double stabbing, Rye crash, attempted arson in Poughkeepsie

Headlines: Woodbourne double stabbing, Rye crash, attempted arson in Poughkeepsie

News 12 Westchester/Hudson Valley Daily Poll

News 12 Westchester/Hudson Valley Daily Poll

0:22
Traffic Alert: Kingston water department working to locate system leak

Traffic Alert: Kingston water department working to locate system leak

1:59
Stormy weather doesn't deter holiday travelers

Stormy weather doesn't deter holiday travelers

0:33
Speeding tickets, DUIs, and accidents keep state police busy on Memorial Day weekend

Speeding tickets, DUIs, and accidents keep state police busy on Memorial Day weekend

Is your dad awesome? Hudson Valley tell us why your dad rocks!

Is your dad awesome? Hudson Valley tell us why your dad rocks!

0:22
All lanes reopen on Mario Cuomo Bridge following vehicle rollover accident

All lanes reopen on Mario Cuomo Bridge following vehicle rollover accident

1:04
Mount Vernon offers Civil War songs presentation to commemorate Memorial Day

Mount Vernon offers Civil War songs presentation to commemorate Memorial Day

1:58
White Plains celebrates Memorial Day with parade, ceremony to honor those who have served in U.S. military

White Plains celebrates Memorial Day with parade, ceremony to honor those who have served in U.S. military