The events of the coming week will be dominated by the Obama administration´s announcement Monday of a new rescue plan. There are numerous theories out there about how the plan will be structured, but they differ so much that it´s hard to make a call about which one is the most accurate. The best thing may be to sit back, relax, and enjoy the ride.
Monday
Midday, the Treasury Department is expected to announce its revamped bailout plan. While the plan´s details are still up for grabs, speculation has included a "bad bank" and insurance-style guarantees, more equity purchases, and the conversion of the government´s already purchased preferred shares into common stock.
Tuesday
The Senate Banking Committee is holding a 10 a.m. hearing devoted to an explanation of the new bailout plan by Treasury Secretary Timothy Geithner. Mr. Geithner is, for now, the only listed witness.
Later, at 1 p.m., the House Financial Services Committee will hear testimony from Federal Reserve Chairman Ben Bernanke on the Fed´s liquidity boosting programs implemented during the financial crisis. This hearing also appears to be a one-man show. Remember the days when the Treasury Secretary and the Fed chairman
Wednesday
At 9:50 a.m., Fed Governor Betsy Duke will speak at the annual convention of the Global Association of Risk Professionals in New York. Her speech will address issues surrounding various attempts to stabilize the housing market.
Today´s big show will be at the financial services committee, where Chairman Barney Frank, D-Mass., will host the CEOs of eight of the Big Nine banks that received the initial round of capital injections last fall from the Treasury. Judging from the title of the hearing [link], it would appear that Rep. Frank plans to ask the bankers to explain what they did with their Tarp money. What? Hasn´t he read Citigroup´s
Thursday
The Senate Banking Committee has plans for a hearing on credit cards, but has not yet released any details.
