McClatchy reports the ‘shocking’ news that Treasury Secretary Timothy Geithner said: Financial system working against recovery. “Geithner said that federal bank regulators would be empowered to conduct “stress tests” on banks to determine their financial health. These tests could lead to moves to close banks before their problems worsen and compound the economic slowdown.”
“Instead of catalyzing recovery, the financial system is working against recovery,” he said. “And at the same time, the recession is putting greater pressure on banks. This is a dangerous dynamic, and we need to arrest it. It is essential for every American to understand that the battle for economic recovery must be fought on two fronts. We have to both jump-start job creation and private investment, and we must get credit flowing again to businesses and families.”
According to the Financial Times, Geithner’s “‘financial stability plan’ will create a new ‘bad bank’– style public-private partnership, which will bring in private money with the initial aim of buying $500bn-worth of distressed assets from banks.” If necessary, the bad bank would buy up to $1 trillion ‘worth’ of the black hole.
Meanwhile, the NY Times reports Geithner said to have prevailed on the bailout.
In the end, Mr. Geithner largely prevailed in opposing tougher conditions on financial institutions that were sought by presidential aides, including David Axelrod, a senior adviser to the president, according to administration and Congressional officials…
He resisted those who wanted to dictate how banks would spend their rescue money. And he prevailed over top administration aides who wanted to replace bank executives and wipe out shareholders at institutions receiving aid.
While last night, President Obama gave his first press conference. According to the LA Times, Obama paints picture of Republican adversaries.
Again and again in his prime-time news conference Monday, Obama painted his GOP adversaries as well beyond the mainstream. Some, he said, do not see any role at all for government in helping avoid an economic meltdown.
“In fact, there are several who have suggested that FDR was wrong to intervene back in the New Deal,” he said, referring to President Franklin Roosevelt, the hero of the Great Depression. “They’re fighting battles that I thought were resolved a pretty long time ago.”
At another point, he implied that his opponents wanted to stand by idly and watch the nation decline: “Do you just want government to do nothing, or do you want it to do something?”
Me? I want the government to do something smart and different. Ya know. Change? Geithner’s plan seems like warmed-over Bush.
Four at Four continues with Bush cronism outlast Obama’s 1st term, Iran seeks improving U.S. relations, and plenty of jobs with wind power.