Obama administration expected to unveil bank rescue plan early next week

WASHINGTON — Treasury Secretary Timothy Geithner will announce early next week the administration’s long-awaited plan to try to get toxic assets off the books of the nation’s ailing banks, two senior administration officials confirm.
The plan will have three major prongs, the officials said. In one part, the Federal Deposit Insurance Corporation would set up investment partnerships and lend those partnerships about 85 percent of the money needed to buy toxic assets. In the second part, the Treasury Department would hire several investment firms to raise private funds, in order to try to lessen the burden for taxpayers. The third piece involves Treasury working with the Federal Reserve to expand lending, in an effort to make it easier for consumers to get mortgages, and auto and other kinds of loans.
The officials spoke on the condition of anonymity because the plan has not been announced. (CNN)