Geithner Announces Bailout Plan

This morning, Treasury Secretary Tim Geithner announced the government’s plan to bailout the U.S. banking system. Here’s are the details of Geithner’s bailout plan:

  1. 1. Step 1 calls for more capital support from the Treasury for banks until they can raise private capital.
  2. 2. Step 2 calls a private $500 billion investment fund that may escalate to $1 trillion to spark private capital that has fled banks.
  3. 3. Step 3 is to stimulate small business loans and consumer debt by expanding the Fed’s fledging TALF program to improve the bundling of loans.
  4. 4. Finally, Step 4 is to stimulate home leading, but the details won’t be announced for a few more weeks.

So far, the stock market is not reacting well.

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