US Government sets bank-rescue plan into action

The Obama administration set into motion its economic recovery plan today, which reportedly brings together private investors and public money into picking up the banks' troubled assets.

The United States put their plan into action, by offering up 75 to 100 billion of its bailout money to private investors, on the stipulation of buying some of the banks' assets that have been pulling the banks down.

The program seeks to put government money alongside private capital and leverage that to $500 billion, or possibly double that amount, with the help of the Federal Deposit Insurance Corp, a U.S. bank regulator, and the Federal Reserve.

The plan will be announced to the media at 8:45AM March 23rd by Treasury Secretary Timothy Geithner. This will also act as a major test for Geithner; back in February the market reacted to the lack of detail in his initial public-private partnerships program talks by rapidly declining.

Under the program he has crafted, the government will provide the lion's share of the funding to buy up soured assets.