Obama administration unveils new bank planPosted: Updated:
(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.