Obama Starts ‘Remaking America' by Tackling Banks, Afghanistan
Ken Fireman and Edwin Chen | Bloomberg.com | Wed-Jan 21, 2009
The plunge in bank stocks yesterday added pressure on Obama to take quick action as he meets with his economic advisers today. While full details of a bank rescue haven’t been settled yet, people familiar with the deliberations said the package is likely to include a $50 billion-plus program to forestall foreclosures, fresh injections of capital into the banks and steps to deal with toxic assets clogging lenders’ balance sheets.
The plan for the banks may be twinned with an $825 billion economic-stimulus bill being negotiated with Congress.
Obama said yesterday the moment “calls for action, bold and swift” to resolve the crisis, which cost the economy 2.6 million jobs last year, the most since 1945.