US Treasury Secretary Timothy Geithner will unveil a new banking rescue plan on Monday aimed at stabilising the sector reeling from losses and recession, a spokeswoman said on Thursday.
Geithner and his staff have been working on new measures to support the ailing financial system with the release of the second half of a 700-billion-dollar Troubled Asset Relief Programme crafted by his predecessor, Henry Paulson.
The rescue plan has been eagerly awaited with credit markets still troubled and banks trying to recover from massive losses linked to the collapse of the US real estate bubble.
Some reports have said the Treasury was considering a special bank to remove the "toxic" assets clogging their balance sheets so that credit can flow again.
Analysts have discussed the notion of nationalising key banks while others have speculated about boosting the level of guarantees for illiquid assets without buying them.
Geithner has indicated any plan would probably avoid full nationalisation of the industry, saying he
wanted to keep banking in private hands.
Analysts have said the notion of an aggregator or "bad bank" could cost at least one trillion dollars.
Some lawmakers meanwhile want part of the TARP funds to help homeowners avert foreclosure, tackling the crisis from a different tack. The number of foreclosures rose 81 percent last year to 3.16 million properties.
Most of the first portion of the TARP was used to inject capital into banks, with Citigroup and Bank of America getting extra capital to avert deeper problems.
Geithner and his staff have been working on new measures to support the ailing financial system with the release of the second half of a 700-billion-dollar Troubled Asset Relief Programme crafted by his predecessor, Henry Paulson.
The rescue plan has been eagerly awaited with credit markets still troubled and banks trying to recover from massive losses linked to the collapse of the US real estate bubble.
Some reports have said the Treasury was considering a special bank to remove the "toxic" assets clogging their balance sheets so that credit can flow again.
Analysts have discussed the notion of nationalising key banks while others have speculated about boosting the level of guarantees for illiquid assets without buying them.
Geithner has indicated any plan would probably avoid full nationalisation of the industry, saying he
wanted to keep banking in private hands.
Analysts have said the notion of an aggregator or "bad bank" could cost at least one trillion dollars.
Some lawmakers meanwhile want part of the TARP funds to help homeowners avert foreclosure, tackling the crisis from a different tack. The number of foreclosures rose 81 percent last year to 3.16 million properties.
Most of the first portion of the TARP was used to inject capital into banks, with Citigroup and Bank of America getting extra capital to avert deeper problems.
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