Geitner unveils plan to help banks sell toxic assets; Binder joins American Bankers Association’s board
Geitner unveils plan to help banks sell toxic assets
Embattled Treasury Secretary Timothy Geithner on Monday unveiled a plan designed to help investors purchase $500 billion worth of toxic assets that remain on bank balance sheets.
The Treasury Department’s new program will use $75 billion to $100 billion in capital from the Troubled Asset Relief Program, or TARP, and capital from private investors.
Under the plan, the Treasury and private capital would provide equity financing, and the Federal Deposit Insurance Corp. (FDIC) would provide a guarantee for debt financing issued by the public-private investment funds to fund asset purchases.
The plan would enable private investors to buy troubled assets at discounted prices from America’s banks, enabling the banks to clear the bad debt from their books.
The announcement prompted the Dow Jones Industrial Average to rise by nearly 500 points Monday.
Binder joins American Bankers Association’s board
Associated Banc-Corp president and chief operating officer Lisa Binder has been elected to serve a one-year term on the American Bankers Association’s board of directors.
The ABA is the nation’s largest bank trade association and works to enhance the competitiveness of the nation’s banking industry and strengthen America’s economy and communities.
"I am pleased to represent Associated and its customers, colleagues, and communities on the ABA board," said Binder, who works in Associated’s downtown Milwaukee offices. "The entire banking industry is operating in unchartered waters, making the ABA an even more critical resource for banks like Associated."
"We are pleased to welcome such an accomplished banker to our board of directors," said Edward Yingling, ABA president and chief executive officer. "The involvement of our dedicated board provides the ABA with essential guidance that helps us fulfill our mission and respond to our members."
"Bankers are very fortunate that a talented individual like Lisa Binder will be helping to lead our industry during these challenging times," said Kurt Bauer, president and CEO of the Wisconsin Bankers Association. "These are historic and difficult times for banks and Lisa’s skills and perspectives will prove invaluable."