Obama administration officials announced Sunday that they would postpone by a day the revelation of a new plan to rescue the US financial system. Treasury Secretary Timothy Geithner will now unveil the plan Tuesday at 11am.
The delay provides an extra day for President Barack Obama to focus on pushing the roughly $800 billion stimulus bill through Congress. It throws into question the schedule for the Senate Banking Committee, which had planned a hearing for 10am tomorrow in which Mr. Geithner would answer questions about the rescue package.
American Banker learned over the weekend that the plan would include a structure for widespread loan modifications. Another component that looks likely to be included in the bailout plan is a set of incentives for private equity to participate in recapitalizing banks.