Official: Bailout overhaul likely to include buying bad assets

WASHINGTON (AP) - The Treasury Department says it's making "minor tweaks" to its overhaul of the government's $700 billion financial rescue, but it's basically done.

By: Associated Press | WNCT
Published: February 10, 2009

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WASHINGTON (AP) - The Treasury Department says it's making "minor tweaks" to its overhaul of the government's $700 billion financial rescue, but it's basically done.

Treasury Secretary Timothy Geithner is expected to unveil the new program tomorrow.

An administration official says it's likely to use some of the money to back private sector purchases of bad assets that are keeping banks from resuming normal lending.

Yesterday, the head of the National Economic Council said the administration has received a number of proposals on how the private sector could help. Lawrence Summers told Fox News Sunday that Geithner believes bringing private capital into the equation would be a better way to solve the banking crisis than relying solely on government resources.

The revamped plan is expected to attach more conditions to any further capital injections for banks. The administration also has said it will devote up to $100 billion to addressing the rising number of mortgage foreclosures.