U.S. Treasury Chief Tim Geithner proposed public-private partnerships as the solution to ongoing bank implosions. The Washington Post reported on Tim's emphasis at the G-7 meeting.
Public-private partnerships aren't just for failing banks. They figure strongly in the stimulus plan. One firm is ready to profit. The Carlyle Group has a $1.15 billion infrastructure fund, a $1.35 billion distressed debt fund, and is raising $3 billion for bank investments. The politically connected private equity underwriter (PEU) benefits from Obama's corporafornication.
Geithner is considering a strategy using public and private funds to tailor solutions for specific banks, the officials said. In one case, government guarantees would be provided to protect a bank from future losses caused by the toxic assets. In another case, the government would buy the assets outright from a bank.
Speaking from a few pages of notes that he had quickly scribbled in a small notebook, Geithner laid out for finance ministers the thinking behind the $787 billion economic stimulus and the U.S. financial rescue, which could contain more than $2 trillion in public and private spending. The initiatives, Geithner told the officials, were designed to be massive enough to address the depth of the U.S. crisis and last long enough to stimulate the economy for the duration of the recession.
Public-private partnerships aren't just for failing banks. They figure strongly in the stimulus plan. One firm is ready to profit. The Carlyle Group has a $1.15 billion infrastructure fund, a $1.35 billion distressed debt fund, and is raising $3 billion for bank investments. The politically connected private equity underwriter (PEU) benefits from Obama's corporafornication.
