Bailouts

Will Geithner's Plan Float?

Treasury Secretary Timothy Geithner is set to unveil his bank rescue package today, but don’t expect any surprises: Details of the plan were leaked a few days ago. Geithner takes to the op-ed page of The Wall Street Journal to rally support for his three-pronged strategy, which relies significantly on private investment. The New York Times, meanwhile, reports that the government spent the weekend trying to entice private investors, who are wary given the recent backlash over things like executive pay and bonuses. "Some of them have told administration officials that they would participate only if the government guaranteed that it would not set compensation limits on the firms, according to people briefed on the conversations. The executives also expressed worries about whether disclosure and governance rules could be added retroactively to the program by Congress."