Source:
CNNMoneyNEW YORK (CNNMoney.com) -- A top Treasury official on Monday outlined the government's multi-prong effort to bail out the United States financial system and resuscitate the economy, though he offered few details on how the plan will be carried out.
Using authority granted in the $700 billion rescue plan passed by Congress 10 days ago, the Treasury Department is moving on five fronts. They are:
Purchasing troubled mortgage-backed securities;
buying mortgages, particularly from regional banks;
insuring mortgage-backed securities and mortgages, ensuring banks and investors don't lose money if borrowers default;
purchasing equity in a broad array of financial institutions; and
helping delinquent borrowers stay in their homes
"Treasury is implementing its new authorities with one simple goal - to restore capital flows to the consumers and businesses that form the core of our economy," said Neel Kashkari, interim assistant secretary for financial stability, speaking in Washington, D.C., before the Institute of International Bankers.
The government has said it would release more details soon. Treasury and Federal Reserve officials are meeting Monday with top finance industry executives to finalize details, a Treasury spokeswoman said....
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http://money.cnn.com/2008/10/13/news/economy/kashkari/index.htm?postversion=2008101308#