Vice President Joseph Biden said on Thursday that alternatives

US to unveil menu of bank fixes next week

banking industry, with government aid tailored to individual banks needs, a source familiar canada goose black friday sale with the administration thinking told Reuters on Thursday.

The source, who spoke anonymously because the canada goose uk outlet plan is still being finalized, said the options are likely to include a bank that could soak up mortgage securities and other distressed Canada Goose Coats On Sale investments weighing down banks canadian goose jacket balance buy canada goose jacket sheets and holding back new lending.

The plan would also include government insurance on a select portfolio of banks troubled assets to canada-gooseoutlets help canada goose clearance sale shield banks canada goose uk black friday from future Canada Goose online losses.

A Canada Goose sale third component would be capital injections by the government in exchange for common shares, rather than the preferred shares and canada goose coats warrants taken so far under the Treasury Department $700 billion Troubled Canada Goose Parka Asset Relief Program (TARP).

Issuing new shares of common stock to the government would help banks protect their balance sheets, as banks are forced to subtract losses from uk canada goose their common equity.

The White House declined to comment.

The administration hopes to unveil the plan as early as Tuesday buy canada goose jacket cheap or Wednesday, according to the cheap Canada Goose source.

hoping to lay out a canada goose clearance menu uk canada goose outlet of options that would provide flexibility and creativity, canada goose the source said. The plan would not be a one size canada goose coats on sale fits all approach but would attempt to tailor assistance based on an individual bank needs.

CNBC reported there were round the clock meetings between government officials and canada goose uk shop senior bank executives over the bank idea but the talks had hit a snag because canada goose store consensus could not be reached over how it would work.

The government faces a tough task in trying balance the interests of bankers and taxpayers in setting up a bad bank to soak up the bad assets.

If the government values the assets too high, the taxpayer would be unduly burdened. If they are priced too low, an accounting tsunami would be Canada Goose Online set off as other banks are forced to write down assets on their own books.

The total cost of the new bank rescue program remained unclear, according to the source.

Sen. Charles Schumer, a New York Democrat, said on Thursday that some experts think creating a bank to buy toxic assets could require as much as $4 trillion. banking industry. banks balance sheets are seen Canada Goose Outlet as a key reason why banks are reluctant to resume lending. The lack of credit has contributed to a year long recession sparked by the collapse of the housing market. Vice President Joseph Biden said on Thursday that alternatives were being considered to stabilize the banks.

But he criticized big bonuses collected by executives working for banks that accepted government bailout money. The New York comptroller reported this week Canada Goose Jackets that Wall Street firms paid out some $18.4 billion in bonuses in 2008 and urged the Obama administration to examine the issue closely.

like to throw these guys in the brig, Biden said in an interview with CNBC television. thinking the same old thing that got us here greed.

Lawmakers from both political parties have criticized canada goose factory sale how the TARP program was run under the Bush administration.

The valuation problem was widely seen as the reason former Treasury Secretary Henry Paulson abandoned his original TARP plan to buy up banks toxic assets.

The administration is looking at three different valuation methods, the source said. One would price the assets based on comparable assets that are still performing, another would use a computer model based cheap canada goose uk on independent analysis, and the third would rely on bank regulators assessments. House Financial Services Committee is scheduled to hold a hearing canada goose outlet on ways to promote bank liquidity. (Additional reporting by Caren Bohan; Editing by Tim Dobbyn).

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