Governments Treasury Plan partially unveiled as Futures Rise

U.S. government's troubled-asset plan relies on investors
The U.S. government's three-pronged plan to get troubled assets off the books of financial institutions relies on the participation of private-sector investors. Many investors, however, are skeptical about doing business with the federal government after the outcry over bonuses at American International Group. The plan includes creating an entity backed by the Federal Deposit Insurance Corp. to purchase loans. The Treasury will expand the Term Asset-Backed Securities Loan Facility to include "legacy" assets. Plus, a public-private investment fund will be established to buy securities. Financial Times (23 Mar.)

Geithner: "Stronger system" is goal of troubled-asset plan: U.S. Treasury Secretary Timothy Geithner explains his plan for removing troubled assets from the balance sheets of financial institutions. Geithner says the private sector will determine prices for the assets, while taxpayers will benefit from any upside. "Our goal must be a stronger system that can provide the credit necessary for recovery, and that also ensures that we never find ourselves in this type of financial crisis again," he writes. The Wall Street Journal (23 Mar.)