WASHINGTON – The government will work with the private sector to buy bad assets and will do more to encourage more lending, Treasury Secretary Timothy Geithner announced today.
The government will provide capital to some financial institutions, especially those it believes can lend money. But the government will conduct a "stress test" on the institution's books to measure its viability and the institution must spell out how it plans to use the money and also embark on a foreclosure mitigation program and limit executive pay.
Geithner did not call for additional congressional funds for the Troubled Asset Relief Program, which is being renamed the Financial Stability Plan.
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