Morning Brief: Treasury’s new plan
Top Story The U.S. Treasury has unveiled its plan to relieve banks of their toxic assets. Under the plan, the government, along with subsidized private investors will spend between $500 billion and $1 trillion to purchase what they are euphemistically calling “legacy assets.” The hope is that banks will be able to resume lending with ...
The U.S. Treasury has unveiled its plan to relieve banks of their toxic assets. Under the plan, the government, along with subsidized private investors will spend between $500 billion and $1 trillion to purchase what they are euphemistically calling “legacy assets.” The hope is that banks will be able to resume lending with the assets off their books.
In today’s Wall Street Journal, Treasury Secretary Timothy Geithner wrote that the program “is better for the taxpayer than having the government alone directly purchase the assets from banks that are still operating and assume a larger share of the losses…Simply hoping for banks to work these assets off over time risks prolonging the crisis in a repeat of the Japanese experience.”
World markets rose on news of the plan, though one European trader cautioned, “Each time Timothy Geithner comes up with a plan to save the banks, the markets rise in anticipation. But when the actual details come out, the markets have fallen.”
Pakistani Chief Justice Iftikhar Chaudry is back at work.
The trial of the lone surviving gunman from the Mumbai attacks began.
Despite Wen Jiabao’s worries, China says it will continue to buy U.S. treasuries.
Without conferring with its allies, Spain announced that it will soon withdraw its peacekeeping troops from Kosovo.
Hungary’s prime minister became the latest national leader to fall to the financial crisis.
Macedonia’s Conservative party leads after the first round of presidential voting.
A senior Fatah official was killed in a bombing in Lebanon.
The ultra-Orthodox Shas party joined Benjamin Netanyahu’s coalition government.
Turkish President Abdullah Gul became the first Turkish head of state to visit Iraq in over three decades.
South Africa has barred the Dalai Lama from attending a peace conference in Johannesburg this week.
Despite the ICC warrant for his arrest, Sudan’s Omar al-Bashir traveled to Eritrea for an official visit.
The pope concluded his controversial tour of Africa with a mass in Angola.
Hugo Chavez referred to Barack Obama as “ignorant” and said he has a lot to learn about Latin America before an upcoming summit. The Venezuelan president also plans to cut spending and raise taxes.
The U.S. military has suggested it may reestablish its controversial presence on the Puerto Rican island of Vieques.
Joshua Keating was an associate editor at Foreign Policy. Twitter: @joshuakeating
More from Foreign Policy
Russians Are Unraveling Before Our Eyes
A wave of fresh humiliations has the Kremlin struggling to control the narrative.
A BRICS Currency Could Shake the Dollar’s Dominance
De-dollarization’s moment might finally be here.
Is Netflix’s ‘The Diplomat’ Factual or Farcical?
A former U.S. ambassador, an Iran expert, a Libya expert, and a former U.K. Conservative Party advisor weigh in.
The Battle for Eurasia
China, Russia, and their autocratic friends are leading another epic clash over the world’s largest landmass.