Updated: If you’re following the political side of things today we suggest reading three articles from NYTimes.com immediately.
Senate Approves Stimulus Plan – Approved by a vote of 61 to 37.
Geithner Offers New Bank Rescue Plan – New program will attempt to get as much as $2 trillion from the Treasury, private investors and the Federal Reserve.
Stocks Slide as New Bailout Disappoints – Dow Jones industrial average down 355 points.
The Obama team today will unveil a new series of steps to boost the nation’s financial system. The program, known as Term Asset-Backed Securities Loan Facility or TALF, will also include an increase in credit for consumers such as those looking to purchase a new car.
The program was originally announced under the Bush administration in November at a level of $200 billion but was never launched. According to Reuters, Treasury Secretary Timoth Geithner will announce the program’s expansion later today with up to $1 trillion. The programs intent is to boost the issuance and sale of securities backed by consumer loans, reports Automotive News.
The $700 billion Troubled Asset Relief Program, or TARP, was used to set aside $24.9 billion in aid to General Motors, Chrysler LLC, GMAC Financial Services and Chrysler Financial. While the two large Detroit automakers have been looking to TARP for further aid, Obama last night said that he does not know whether more money will be needed for the Tarp fund.