The Obama administration on Tuesday will detail its strategy to rescue troubled financial institutions, with Treasury Secretary Timothy Geithner expected to unveil a plan to encourage banks to sell off billions of dollars in bad assets to clear their books for new lending.
The Treasury Department’s plan would draw on the second installment of the $700 billion financial rescue package known as the Troubled Asset Relief Program (TARP), which was passed by Congress in the waning days of the Bush administration.
Geithner was set to present the plan at 11 a.m. ET Tuesday. The government hopes the plan will provide adequate incentives to private investors to buy up to $500 billion in bad assets.
Treasury also is expected to announce it will target $50 billion aimed at stanching a flood of home foreclosures.
Obama Warns of Economic Catastrophe If Lawmakers Don't Act On Stimulus » President Obama turned his prime-time news conference Monday night into a defense of his emergency stimulus plan and an offensive against Republicans who try to "play the usual political games."
Clearing the way for a Tuesday vote when formal passage is expected, the Senate advanced an $838 billion version of the stimulus plan Monday. (NPR)
Sen. Edward Kennedy returned to the Senate to cast a vote for the plan, saying the test vote was too important to miss. (WBUR)
Florida is looking for their share of the plan. Republican Gov. Charlie Crist is supporting the proposal that much of the GOP opposes. (NPR)
On Point takes a look at and pulls apart President Obama's recipe for recovery.
Part of the bill increases food stamp benefits because of the steep rise in applications. (NPR)
The plan also includes roughly $70 billion for the nation's energy economy, most of it for "green" energy. (NPR)
Boston Mayor Thomas Menino is looking for ways to ease the city's budget woes. The mayor and his senior aides are taking a 3-percent pay cut and freezing their wages. (WBUR)
Facing cuts in state funding, the University of Massachusetts system plans to raise fees by $1,500 a year, hoping to raise $68 million. (WBUR)
China Auto Sales Overtake U.S. In January » The Chinese bought more cars than Americans did in January, according to China's figures. If the numbers stay on trend, this could be the year that China surpasses the United States as the world's number one automobile market. (NPR)
Meanwhile, owning a car is changing Chinese society — from courtship rituals to leisure activities. (NPR)
Swiss Bank UBS Loses $7.57B, Cuts 2,000 Jobs » Swiss bank UBS reported Tuesday it lost a larger-than-expected $7.57 billion in the fourth quarter and announced it would cut another 2,000 jobs as it refocuses on its home market. (NPR)