Tarp Spending Plan To Be Announced

02.10.09 | FL News Team

The Obama administration is expected to announce plans for reviving the troubled banking sector. Treasury Secretary Timothy Geithner will present a bank rescue plan at 11 a.m. Eastern Time. At issue is how to spend the remaining money from the 700-billion-dollar financial rescue package known as the Troubled Assets and Relief Program, or TARP. 

The current plan would provide incentives for private investors to purchase up to 500-billion dollars of bad assets through the Federal Reserve's Term Asset-Backed Securities Loan Facility. That program, called TALF, would also cover commercial mortgage-backed securities and private-label mortgage securities. Institutions may also obtain capital infusions after undergoing a government review.