BUSINESS BRIEFS
Toxic-asset plan could be revealed on Monday
Advertiser News Services
| |||
 |
|
||
WASHINGTON — Treasury Secretary Timothy Geithner could announce as soon as Monday his much-anticipated plan to get toxic assets off the books of the country's struggling banks, administration and industry officials said.
The plan will use the Federal Reserve and the Federal Deposit Insurance Corp. to make the resources of the government's $700 billion financial rescue fund go further, the officials said yesterday.
The officials, who spoke on condition of anonymity because they were not authorized to speak publicly about Geithner's plan, said it will have three major parts.
One program will use the bailout fund to create a public-private partnership to back purchases of bad assets by private investors.
A second portion of the plan will expand a recently launched program being run by the Federal Reserve called the Term Asset-Backed Securities Loan Facility. That program is providing loans for investors to buy assets backed by consumer debt in an effort to make it easier for consumers to get auto, student and credit card loans. Under Geithner's proposal, this program would be expanded to support investors' purchases of banks' toxic assets.
The third part of the Geithner plan would use the resources of the FDIC, the agency that guarantees bank deposits, to purchase toxic assets.
GOP IN SENATE BLOCK AIG TAX BILL
WASHINGTON — Senate Republicans are drawing out a flap that has made the Obama administration squirm, applying the brakes to Democratic attempts to quickly tax away most of the bonuses at troubled insurance giant AIG and other bailed-out companies.Sen. Jon Kyl, the Republicans' vote counter, blocked Democratic efforts Thursday evening to bring up the Senate version of the tax bill to recoup most of the $165 million paid out by AIG last weekend and other bonuses in 2009. The House had swiftly approved its version of the bill earlier in the day.
MADOFF TO REMAIN IN JAIL, COURT SAYS
NEW YORK — Disgraced financier Bernard Madoff will remain in prison until he is sentenced in one of the largest financial frauds in history.The 2nd U.S. Circuit Court of Appeals yesterday backed a lower court ruling a day after hearing arguments from a lawyer for the 70-year-old former Nasdaq chairman who sought Madoff's release from jail. The government argued against freeing him.
FANNIE MAE CEO DEFENDS BONUSES
WASHINGTON — Mortgage giant Fannie Mae's chief executive warned yesterday that canceling bonuses for workers at institutions receiving federal bailout money could undermine efforts to stabilize the U.S. housing market.Herbert Allison, who was installed by government regulators as CEO of the Washington-based company last fall, sent a companywide e-mail yesterday defending Fannie Mae's bonus program.
"I am deeply concerned that eliminating our retention plan would jeopardize our ability to fulfill the mission the government has given us to address the housing crisis," he wrote, citing President Obama's plan to prevent up to 9 million foreclosures.
