Showing posts with the label Financial Stability Plan

Plan to restore stability to "our" financial system

Today, Treasury Secretary Timothy Geithner introduced the Financial Stability Plan . Our comments below: The main features are the creation of: a. the Financial Stability Trust b. the Public-Private Investment Fund c. the Consumer Lending Initiative d. the Foreclosure Prevention Plan e. the Small Business Lending Initiative The Financial Stability Trust is a "Capital Pool" designed to serve as a buffer to help absorb losses. (Funny, we proposed the same thing for community banks in an application we submitted to Treasury for New Markets Tax Credits. We were not, however, funded. Looks like we need to be, well, non-minority..and to have caused massive damage to the global economy in a thoroughly unethical way. But I digress..) This is a rebranding/repackaging of the current Capital Purchase Program (CPP). In fact, all bank investments made over the past few months will be held in the "Trust". As part of this "Pool", banks over $100 billion will have to