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February 9th, 2009
11:51 PM ET

On the Radar: Banking Bailout II

Cate Vojdik
AC360° Writer

Sequels more often than not disappoint; so do remakes for that matter.  Case in point: The Poseidon Adventure. Enough said.

When sequels and remakes are billed as being new and improved, well, that's usually a clue to high-tail it in the other direction. We're certainly hoping that's not the case with TARP II, which premieres Tuesday.

Treasury Secretary Timothy Geithner has promised radical changes in the Troubled Asset Relief Fund, created last fall to shore up the deteriorating finances of the nation's banks. At stake is the $350-billion second installment of the $700 billion bailout fund. The lack of transparency, accountability, and frankly, effectiveness, of the first bailout round elicited stinging criticism.

Tuesday, Geithner will unveil his new and revised financial bailout plan. A big difference this time around: the plan aims to add private funding as a new tool to address the toxic debt clogging banks' balance sheets. Joe Johns will take a close look at the toxic assets angle and explain how the Bailout 2.0 will work.

Also tomorrow, President Obama continues his grassroots push for his stimulus and recovery plan. He'll host a town meeting in Ft. Myers, Florida, where unemployment has spiked to more than 10 percent. While the president is selling the soap, the Senate will be voting on its $838-billion version of the stimulus plan. Ed Henry and Jessica Yellin will have all the details.

See you tomorrow at 10 p.m. ET!


Filed under: 360° Radar • Cate Vojdik
soundoff (22 Responses)
  1. Tom in Mich

    Why can't we turn the Federal Reserve Bank into a bank that will loan directly to consumers for mortgages and to small business who need credit under 500k? Use Tarp II to fund this loan pool. Let the National Association private banks deal with their poor business plans for using Tarp 1 funds on jets, stroking each others' portfolios and 12 billion in Christmas bonuses. Let them now compete with the Fed for the business. What's that you say, free-marketers? Competition is your touchstone? Let's see. The NA private banks will have to compete for the joe six-pack's loan business, which in the aggregate is not all that small. Somehow I'm betting the NAs stumble over themselves, slobbering to loosen credit.

    Thanks and g'nite from Depression DEtroit.

    February 10, 2009 at 10:30 pm |
  2. Mark The Carpenter

    I like your show and enjoy hearing from your panel " most" of the time.
    I do agree with Ron however, my fellow Montanan, it would be nice to see some real American people once in awhile on your show.
    I wouldn't care if it's Mark The Carpenter or Joe The Plumber, I just like hearing from other average American people like myself.
    that's why I participate in your Blogs.
    Thankyou very much.

    February 10, 2009 at 1:54 pm |
  3. ron fisher

    Bail Out: I am 67 years old and former small business owner......and I just Loved the Obama speech last night. First Presidential speech that I have totally watch since 911. When Bush was on TV....it was a scramble to find something else to watch....even pro wrestling was better than Bush.
    Now to AC360..........I watched your panel of people discuss the Obama Bail Out. I suggest that you get rid of the policitcal nest of writers and analyst. Get some small business owners and let them tell you what is needed. Just how many of your shows anaylst really have every owned or started a small business......that needed a line of credit.......I am talking manufacturing.......no some paper pushing value added business. To make real money.......manufacture money......one has to make a product........why does McDonald's make money....they make food.......not buy it from a super maket and re-sell it.
    There used to be a Investment Tax Credit, that would allow a small business to write off investment in new equipment (tax break).....bring back a good investment tax credit.

    Take away the foreign incentives that some companies get for moving to Mexico or India.......NOW. Bring back manufacturing to bring back stability in main stream Americn life to Ma & Pa.

    Thanks

    Ron Fisher (Montana)

    February 10, 2009 at 8:57 am |
  4. Christine Dowdell

    It has been said “the bottom 40% of the United States population owns less than 1% of the nation’s wealth”. Will the “stimulus package” help the bottom 40% move into a higher percentage?
    Or are we (the masses who want that level playing field) doomed to being the taxpayers (servants) who support the 1% who control the nation’s wealth. How about we address that issue??
    It’s a DISGRACE the ultra rich are making ANY decisions for the taxpayers, off with their heads! Or better, make their children attend the schools they do not wish to repair!! Grrrr!

    February 10, 2009 at 8:37 am |
  5. Michelle

    It will be interesting to see what Secretary Geithner comes up
    with he has to find the right mixtures to fix our banking system.
    Perhaps if the financial sector and stimulus work in combo, we
    will get out of this very deep recession.

    February 10, 2009 at 8:30 am |
  6. Isabel Abreu, Brazil

    So today the day promises!

    I just hope that those promises are fulfill, and that newness are positive!

    February 10, 2009 at 7:28 am |
  7. john

    The gover ment is wrong about free trade. When u move jobs out of the us u lose jobs u lose your tax base. No work no income.Simple fix stop the job lose by taxingh companies more for leaving the us not a tax break. wake up peopl tell the truth to the people of this great nation..Please dont pring up all of this pettie things. Like whats up with madolf?

    February 10, 2009 at 6:10 am |
  8. john

    I don,t under stand why u guys arnt saying anny thing about Madolf. The man stills bils and is walking the streets. If it was u our me we would be looked up . he is a thef and should be in jail not in a top end hotel. I bet you wirth out no press he will get off.Look at the last on no one went to jail that was in charge. It gives me the inpresion if u are rich ther is no law. So get on it and help put that man away wher he should be. U are responsible for leting the people know.Tell us why he is in a hotel and not in jail.

    February 10, 2009 at 5:57 am |
  9. bianca

    I think the stimulus bill is a great idea. in order to get this country back in order everyone has to first know that this country is in big trouble. We are in a recession....hello...Obama is putting the money where it counts...There are 6 schools, and counting, getting shut down in california within the next few months, so where will these students go...to overcrowd other schools...some people are saying that the stimulus packet should not include funds for education...thats just stupid...how are we going to prepare our next generation to take care of this world whenwe get old....we need to prepare our young to take care of this country....bottom line is that, this bill just makes sense...yea maybe it is a lot of money but we are spending 1/4 of a million dollars in military while people are losing jobs and recieving no healthcare,starving and losing there homes......Some body has to take care of We the actual people of this country......they say that Obama will triple the national debt with spending more money like bush but the big difference is that obama is spending money to make money unlike bush his spending was being done in all the wrong places thats what got us into this mess in the first place....duh...and of course all the old republicans, who never want change, are going to fail to mention this.......So my big question is what other ideas are out there that are better than this idea......and please don't say give the money to the banks because they would gamble it away.....and of course progress takes time as long as its happening.....I don't see anyone else doing this...

    February 10, 2009 at 4:44 am |
  10. richard d antone

    hello mr anderson the republicans and the demacrats should nd everybody stimulus checks like they did last summer so we can get the economy going again and put back chiropractor service back in law in vermont their is some of us that cant go without chiropractor sevices i would appreciate if you would bring this up in your show tonight and what about us that are disabled and we are on social security disability who cant work i would appreciate it very much if you would ask the demacrats and the republicans what we have to do to get stimulus checks thanks anderson i watch you every night

    February 10, 2009 at 2:45 am |
  11. David

    Ekhart Indiana's unemployment rate up to 18%. Mainly due to an RV manufacturer that is downsizing. Hmmm ... why would that be? Maybe it was the sky high gas prices during the summer that made RVs, big trucks, and just driving a bit more expensive ...

    It will take longer that a couple months for people to start buying big ticket items. People's psychology is like that.

    Our current prosperity/excess was built mostly on borrowing and spending beyond our means. Now we are paying for it. So, what is the answer from our top economists and our president? Let's borrow more and spend more. More alcohol to the alcoholic who is withdrawing ! I absolutely understand that we need to ease some of the pain during this downturn. But, maybe we need to get through this, so that we will spend money that we actually have. Then, we will have real, sustained growth that is not built on a house of cards, without selling our souls to India and China who will eventually own us.

    February 10, 2009 at 2:38 am |
  12. James Grina

    President did not endorse the compromise bill in the senate. Is this an indication that the House Democrats will be able to add back some packages? Which is more important, the ability of the Democratic majority to determine policy, or the bipartisan efforts of the President? Certainly, those proposals that have been cut by the Senate package could easily be reintroduced if they are capable of surviving as valuable legislation on their own. On the other hand, if they cannot survive without the urgency of a stimulus bill, are they real?

    February 10, 2009 at 2:27 am |
  13. allen

    Im going to hold out and hope that the fat cats are not going to suck up this money and take themselfs on another spending spree thinking that if they spend our money on themselfs is going to stimulate the economy and do us a big favor.

    February 10, 2009 at 2:24 am |
  14. Randy

    I think the President has a very strong voice, and I believe that his voice will be what makes the stimulus possible

    February 10, 2009 at 2:19 am |
  15. Jen

    I'll believe it when I see it.

    Geithner's only claim to fame thus far is how much trouble he was in, personally, with his failure to pay his own taxes. So we are supposed to trust another crook just because Obama says too? Yeah, right.

    February 10, 2009 at 2:06 am |
  16. Joseph

    Hello Anderson and staff! Great news conference, President Obama has a very clear understanding of the extreme importance and significance of the consumers' role in helping to get the economy moving in the right direction. This is evident in his continuous mentioning of the "creation of 4 million jobs".

    February 10, 2009 at 1:10 am |
  17. Sue in Oswego NY

    Citigroup Unfair Business Practices

    Why would we give bail-out money to such a poorly run business?

    Today I began to file a complaint against CitiMastercard with the NYS Consumer Protection Agency.
    I spent all afternoon on the phone, shuffled through several divisions of Citigroup, only to end up back where I started. It was the culmination of a 3 month dispute. I just want to pay my bill on time- but they are not making it easy.

    Each month if payment is not immediately returned they add exorbitant late charges. CitiMastercard blames the USPS, but all my other mail comes in a timely manner. Paying online was their other suggestion -I've had my charge card info stolen twice online, on secure sites through major security companies. and no longer consider that an option. They will make transfers from my bank for a "minimal" charge of $14.95!

    Why would a company make it so difficult to pay a bill?

    They are infamous for hiking interest rates with little justification.

    I am only one of many with this problem!

    Late this afternoon a customer rep at Citi corporate headquarters promised she would have someone return my call that could address the problem.

    I won't hold my breath!

    I called the White House, where I spoke with a real person in a timely manner- Amazing!
    I don't want our tax dollars given to this bunch of thieves! After patiently hearing my case they said they would make sure The President got the message. I chuckled as I closed my cell phone,
    "So this is what hope feels like."

    February 10, 2009 at 12:53 am |
  18. Mark The Carpenter

    Can someone please explain this Bank Bail-out to me ?
    Is the US Government "loaning" the Big Banks our money or is it a Gift ?
    I sure hope my government isn't " Gifting" my tax dollars to these wealthy bankers so they can use my money to foreclose on my house. Please tell me it isn't so...

    February 10, 2009 at 12:30 am |
  19. deborah

    I am mystified by the questions the reporters asked the President; only 3 questions out of 13 had any merit. It seemed that most of them were trying to be clever, cute and or cynical. They were not thoughtful questions that we the tax paying citizen suffering right now want to know the answers to. Perhaps the Washington Press Corp should be changed to the People Corp with ordinary citizens asking the questions.

    February 10, 2009 at 12:27 am |
  20. DP

    Can SOMEONE tell me how on earth, that the banks receive my money (and it keeps on rolling) and they STILL are allowed to STICK IT TO ME (and every other american with a credit card) again and again with their outrageous-loan shark-high interest rates on the credit cards with NO ACCOUNTABILITY??????
    Talk about stimulus package with IMMEDIATE relief for americans who continue to foot the bill......put a CAP ON THE INTEREST RATES A BANK CAN CHG THE CONSUMER!
    With interest rates so low, how can the interest be so HIGH on credit cards ?
    How much more can we take ?

    February 10, 2009 at 12:19 am |
  21. concern/denver Colorado

    Banks should not be bailout until this package is passed ..and placed into action ....people first banks later ...

    February 10, 2009 at 12:18 am |
  22. jimer3225

    If the congress is against upgrading &/or giving unemployment benefits, health care benefits, ect. to people that are not paying parole tax's then 'Why' are they willing to give these benefits (+other benefits) to illegal immigrants?.......I'm Not Being Predigest, BUT, How is That Fair??....jimer

    February 10, 2009 at 12:01 am |