by Bill McBride on 2/20/2009 02:42:00 PM
Friday, February 20, 2009
From Bloomberg: U.S. Stocks Pare Drop on Speculation Treasury to Detail Bailout
[CNBC reported] that the Treasury Department will release some details of its plan to rescue the financial system next week.From the WSJ: White House Says Banks Shouldn't Be Nationalized
Amid fears that Citigroup Inc. and Bank of America Corp. could be on the verge of being nationalized, the White House gave assurances that it prefers banks to remain out of the government's hands.The key for Geithner is to explain what "stress test" means, how the stress tests are proceeding, and when the tests will be complete.
"This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring that they are regulated sufficiently by this government," White House spokesman Robert Gibbs said Friday. "That's been our belief for quite some time, and we continue to have that."
If Geithner just talks about the Public-Private Investment Fund his speech will probably not be well received. Three words for Geithner: Stress Test. Explain.
Posted by Bill McBride on 2/20/2009 02:42:00 PM