Financial Services Committee - WHAT THEY ARE SAYING: Newspapers From Across the Spectrum Call on Geithner For Plan, Details

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WHAT THEY ARE SAYING: Newspapers From Across the Spectrum Call on Geithner For Plan, Details

February 12, 2009

· "Wall Street hates uncertainty, and that's what Geithner delivered"

· "The administration has to figure out the details - and get back to the public with answers"

• "Geithner's plan on how to save America's banks lacks detail"

· "Geithner's opening act as Rescuer in Chief yesterday was a bomb"

USA Today: "Treasury secretary delivers uncertainty instead of detail ... What Geithner described Tuesday was less of a plan than an outline of one. He would create a public-private investment fund of $500 billion-$1 trillion to buy toxic loan portfolios, but he gave few details on how this would be structured. He would commit $50 billion to address "avoidable foreclosures" but again offered few details. Even his plans for greater transparency...were a bit blurry. ... The markets were clearly expecting more. ... Wall Street hates uncertainty, and that's what Geithner delivered. ... he needs to communicate more specifically. The banking business, at bottom, rests on confidence. That confidence will return only with another c-word - clarity." (Editorial, 2/11/09)

New York Times: "Someone should have told...Geithner that the one thing to avoid at a time of uncertainty is raising more questions. ... His speech invited, at best, healthy skepticism from the markets, the public and lawmakers - and at worst, more mistrust. ... There were only outlines. ... He also did not address the extent of any taxpayer subsidies or other government guarantees that may be used to entice private investors to participate. ... The lack of clarity and direction in Mr. Geithner's remarks began to give rise to speculation that the "real" plan is for a big back-door subsidy to banks and private shareholders - at taxpayers' expense. ... Mr. Geithner and the Obama team have not given enough detail on their approach.... Nor have they explained why it is better than other ideas. ... The administration has to figure out the details - and get back to the public with answers." (Editorial, 2/11/09)

Washington Post: "America's banks need a plan. The Obama administration delivered a concept. ... The Geithner initiative was...more a concept than a plan, really." (Editorial, 2/11/09)

New York Daily News: "Where's the Beef? ... The markets delivered a swift, harsh verdict on Treasury Secretary Tim Geithner's rescue plan for the American financial system: He should have kept his mouth shut. Stocks dropped almost 5% after the much anticipated plan proved to be less of a detailed proposal and more of a statement of good, trust-us intentions. The buildup to Geithner's debut, including President Obama's promise of impressive action, far exceeded the delivery. ... Mistrust is epidemic. Worry is escalating to panic. ... Obama and Geithner must move past talk into smart execution." (Editorial, 2/11/09)

Los Angeles Times:"The Obama administration's plan to bolster the U.S. financial system is comprehensive, but its lack of details is troubling. ... with too few details about how the new program would create a market for banks' distressed assets and avert more foreclosures, we remain wary of its risks and effectiveness. ... Wall Street's reaction Tuesday -- the Dow dropped 382 points -- showed that the missing elements of the plan may be even more important. ... We need to see the rest of his hand." (Editorial, 2/11/09)

The Economist: "Tim Geithner's plan on how to save America's banks lacks detail. ... the new plan, which will deploy the second half of the $700 billion Troubled Asset Relief Programme (TARP), was frustratingly light on detail. ... Having allowed expectations of a bold and detailed plan to build, he served up a disappointment-not the wisest of moves in the midst of a severe crisis of confidence." (Editorial, 2/11/09)

Wall Street Journal: "Treasury Secretary Timothy Geithner's opening act as Rescuer in Chief yesterday was a bomb. What everyone saw was Geithner at the Improv, a routine with a few good lines but a lot of material that needs more, well, practice. ... Mr. Geithner offered something for everyone with a financial problem, albeit with most of the details left to be filled in later. ... Like President Obama's, Mr. Geithner's rhetoric tends too much toward doom and gloom for our tastes, or to help public confidence. ... There is a great deal of private capital ready to take risks again if the Obama Treasury lays out transparent, consistent rules -- and if it makes clear that its goal is to restore at the earliest possible date a healthy, privately run banking system." (Editorial, 2/11/09)

New York Post: "Geithner's Latest Gamble ... Geithner's plan, when all is said and done, could run to a staggering $2 trillion, including a sizeable chunk of private money. ... Not that Geithner or his fellow Team Obama gurus have any idea if it will work." (Editorial, 2/11/09)