{"page":"\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/resources-572d6a42.css\" /\u003e\n\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/lp_boclips_stylesheets-f4d0de30.css\" media=\"all\" /\u003e\n\u003cdiv data-title='Obama unveils plan to tackle bad assets on banks\u0026#39; balance sheets' data-url='/boclips/videos/5c54c0c6d8eafeecae14d4dd' data-video-url='/boclips/videos/5c54c0c6d8eafeecae14d4dd' id='bo_player_modal'\u003e\n\u003cdiv class='boclips-resource-page modal-dialog panel-container'\u003e\n\u003cdiv class='react-notifications-root'\u003e\u003c/div\u003e\n\u003cdiv class='rp-header'\u003e\n\u003cdiv class='rp-type'\u003e\n\u003ci aria-hidden='true' class='fai fa-regular fa-circle-play'\u003e\u003c/i\u003e\nVideo\n\u003c/div\u003e\n\u003ch1 class='rp-title' id='video-title'\u003e\nObama unveils plan to tackle bad assets on banks\u0026#39; balance sheets\n\u003c/h1\u003e\n\u003cdiv class='rp-actions'\u003e\n\u003cdiv class='mr-1'\u003e\n\u003ca class=\"btn btn-success\" data-posthog-event=\"Signup: LP Signup Activity\" data-posthog-location=\"body_link_boclips\" data-remote=\"true\" href=\"/subscription/new\"\u003e\u003cspan\u003e\u003cspan\u003eGet Free Access\u003c/span\u003e\u003cspan class=\"\"\u003e for 10 Days\u003c/span\u003e\u003cspan\u003e!\u003c/span\u003e\u003c/span\u003e\u003c/a\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-body'\u003e\n\u003cdiv class='rp-info'\u003e\n\u003cdiv aria-label='Hide resource details' class='rp-hide-info' role='button' tabindex='0'\u003e\u0026times;\u003c/div\u003e\n\u003ci aria-label='Expand resource details' class='rp-expand-info fai fa-solid fa-up-right-and-down-left-from-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003ci aria-label='Compress resource details' class='rp-compress-info fai fa-solid fa-down-left-and-up-right-to-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003cdiv class='rp-rating'\u003e\n\u003cspan class='resource-pool'\u003e\n\u003cspan class='pool-label'\u003ePublisher:\u003c/span\u003e\n\u003cspan class='pool-name'\u003e\n\u003cspan class='text'\u003e\u003ca data-publisher-id=\"30356011\" href=\"/search?publisher_ids%5B%5D=30356011\"\u003eCurated Video\u003c/a\u003e\u003c/span\u003e\n\u003c/span\u003e\n\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-description'\u003e\n\u003cspan class='short-description'\u003e1. Wide of US President Barack Obama and advisors in Cabinet Room2. SOUNDBITE: (English) Barack Obama, US President:\"As all of you know we have been busy on a whole host of fronts over the last several weeks with the primary purpose of...\u003c/span\u003e\n\u003cspan class='full-description hide'\u003e1. Wide of US President Barack Obama and advisors in Cabinet Room\u003cbr/\u003e2. SOUNDBITE: (English) Barack Obama, US President:\u003cbr/\u003e\"As all of you know we have been busy on a whole host of fronts over the last several weeks with the primary purpose of stabilising the financial system so banks are lending again, so the secondary markets are working again in order to make sure that families can get basic consumer loans, auto loans, student loans that small businesses are able to finance themselves and we can start getting this economy moving again.\"\u003cbr/\u003e3. Side shot of Obama speaking\u003cbr/\u003e4. SOUNDBITE: (English) Barack Obama, US President:\u003cbr/\u003e\"The good news is that we have one more critical element in our recovery, but we've still got a long way to go, and we've got a lot of work to do.  But I'm very confident that, with the team that we've got assembled, we're going to be able to make it happen.\"\u003cbr/\u003e5. Wide of Cabinet Room \u003cbr/\u003e6. SOUNDBITE: (English) Barack Obama, US President:\u003cbr/\u003e\"This morning, Secretary Geithner announced the latest element in this multi-pronged approach, and that is a mechanism that he, in close consultation with the Federal Reserve and the FDIC, has initiated in order to allow banks to take some of their bad assets off their books, sell them into a market, but do so in a way that doesn't just obligate taxpayers to buy at whatever price they're willing to sell these assets, instead involves a public-private partnership that allows market participants who have every interest in making a profit to accurately price these assets so that the taxpayers share in the upside, as well as the downside.\"\u003cbr/\u003e7. Obama speaking\u003cbr/\u003e8. SOUNDBITE: (English) Barack Obama, US President:\u003cbr/\u003e\"We believe that this is one more element that is going to be absolutely critical in getting credit flowing again.  It's not going to happen overnight.  There's still great fragility in the financial systems, but we think that we are moving in the right direction. And we are very confident that, in coordination with the Federal Reserve and the FDIC, other relevant institutions, that we are going to be able to not only start unlocking these credit markets, but we're also going to be in position to design the regulatory authorities that are necessary to prevent this kind of systemic crisis from happening again.\"\u003cbr/\u003e9. Wide of Obama speaking to reporters\u003cbr/\u003eThe administration US President Barack Obama on Monday launched its much-awaited assault on the worst US banking crisis in 70 years, preparing an infusion of (b) billions of federal dollars to thaw the nation's frozen credit markets and ease the economy out of recession.\u003cbr/\u003eTreasury Secretary Timothy Geithner's banking plan will use low-interest loans and between 75 (b) billion US dollars to 100 (b) billion US dollars of what's left of the government's 700 (b) billion US dollar bailout fund to entice private sector investors to initially buy about 500 (b) billion US dollars in toxic assets - taking them off the books of the nation's banks.\u003cbr/\u003eThe administration also said the initial effort could grow to 1 (t) trillion US dollars, as the programme proves successful in attacking the problem that has stifled bank lending to consumers and businesses, compounding the worsening global downturn.\u003cbr/\u003eObama told reporters on Monday his economic team was \"very confident\" the rescue plan would work and that taxpayers would share both in the upside of the plan as well as the burden of any losses.\u003cbr/\u003eSurrounded in the Cabinet room by leaders of his economic team he said there was still \"a long way to go\".\u003cbr/\u003eHe also downplayed expectations for a quick fix.\u003cbr/\u003eAt the same time, Obama said the economy was beginning to show \"glimmers of hope\" in the housing market, where the bursting real estate price bubble last year set in motion the financial crisis that nearly brought the system to collapse.\u003cbr/\u003eThe announcement of the plan sent world stock markets soaring on Monday. \u003cbr/\u003eOn Wall Street, major stock indexes jumped more than 4 percent in morning trading on Monday, including the Dow Jones industrial average, which rose by nearly 300 points.\u003cbr/\u003eThe program may, however, face stiff resistance as it debuts after a week of Wall Street-bashing in Congress, where lawmakers were outraged over troubled insurance company American International Group Inc. paying 165 (m) million US dollars in bonuses after taking more than 170 (b) billion US dollars in government bailouts to stay afloat.\u003cbr/\u003eObama, who expressed outrage over the payouts, has, nevertheless signalled, opposition to a quickly passed House of Representatives measure to tax such bonuses at 90 percent. In a CBS television interview broadcast on Sunday he questioned the bill on constitutional grounds.\u003cbr/\u003eThe programme was not the first such attempt by the new administration to revitalise an economy mired in recession. \u003cbr/\u003eGeithner counselled patience, saying work to rehabilitate the banking and financial industry has to go forward despite \"deep anger and outrage\" over bad lending and investment practices \u003cbr/\u003eIn a lengthy fact sheet on the bank rescue plan released on Monday, the administration said it expects participation from a broad array of private sources, ranging from pension funds to insurance companies and other long-term investors.\u003cbr/\u003eThe Federal Reserve, which is the US central bank, and the Federal Deposit Insurance Corp., an independent agency of the government that backs bank deposits, will have large roles in putting up the needed cash.\u003cbr/\u003eUnder a typical transaction, for every 100 US dollars in soured mortgages being purchased from banks, the private sector would put up 7 US dollars and that would be matched by 7 US dollars from the government. The remaining 86 US dollars would be covered by a government loan provided in many cases by the Federal Deposit Insurance Corp.\u003cbr/\u003eGeithner defended the decision to have the government carry so much of the risk. He said the alternative would have been to do nothing and risk a more prolonged recession or have the government carry all of the risk.\u003cbr/\u003eGeithner also said there would be significant advantages from having  private market participants bidding against each other to set prices for which the bad assets will be purchased. \u003cbr/\u003eThe government has been struggling since the credit crisis hit last fall to find a way to sop up the bad assets.\u003cbr/\u003eThe Geithner banking plan was designed to resolve the vexing problems of how to price the bad bank assets while showing the government has sufficient capital to make a difference.\u003cbr/\u003eThe administration hopes the market reaction to this proposal proves more favourable than Geithner's initial broad outline for the overhaul on February 10, when investors, upset with a lack of detail, sent the Dow Jones industrial average tumbling that day.\u003cbr/\u003e\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv 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