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Treasury officials to unveil overhauled bailout plan

  • Story Highlights
  • Obama administration plans separate stability plan on top of embattled stimulus
  • Treasury Secretary Timothy Geithner and top economic advisers will create plan
  • New bailout would be "an overhaul of the whole program," senior official says
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From Ed Henry
CNN Sr. White House Correspondent
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WASHINGTON (CNN) -- The Obama administration is planning a separate financial stability plan that could cost hundreds of billions of dollars on top of the massive stimulus package the Senate is struggling with, two senior administration officials said.

Treasury Secretary Timothy Geithner will unveil an economic recovery plan Monday that would buy up troubled assets from banks and deal more broadly with the credit crunch and foreclosure crisis, according to the officials.

The officials describe the move as a major reform of Treasury's Troubled Asset Relief Program (TARP), the federal bailout that was created in autumn to try to stabilize the financial system, but has come under withering criticism across the political spectrum.

"It will be an overhaul of the whole program," one senior official vowed about the package being put together by Geithner and other top economic advisers to President Obama.

Officials said the goals of the new plan will include bringing new transparency and accountability standards to TARP, keeping people in their homes and increasing lending to consumers and small businesses.

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