Geithner's Bailout Plan Disappoints Wall Street

Updated from 2:25 p.m. EST

Treasury Secretary Timothy Geithner on Tuesday unveiled a new $1.5 trillion plan aimed at combating the financial crisis through a collaboration of public and private investments and a consumer and business lending initiative.

In prepared remarks released ahead of his press conference, Geithner offered his plans for deploying the second half of the $700 billion Troubled Asset Relief Program, or TARP, to banks that can prove their worthiness. Geithner referred to the Financial Stability Plan as a "comprehensive strategy" that "will cost money, involve risk, and take time."

"This is a challenge more complex than any our financial system has ever faced, requiring new systems and persistent attention to solve," Geithner said in his remarks. "But the president, the Treasury and the entire administration are committed to see it through because we know how directly the future of our economy depends on it."

As part of the new package, Geithner said banks will be required to go through a carefully designed comprehensive stress test. "We want their balance sheets cleaner, and stronger," he said. "And we are going to help this process by providing a new program of capital support for those institutions which need it."

The capital provided to troubled banks will come with conditions to help ensure that the assistance preserves or generates lending capital above the level that would have been possible in the absence of government support, Geithner said.

In order to ensure more transparency and accountability, the plan requires firms to show how assistance from the Financial Stability Plan will expand lending and will push to mitigate mortgage foreclosures. Additionally, banks will be required to restrict dividend payments, stock repurchases and acquisitions and executive compensation will be limited.

Will the government's latest bank-rescue package keep the financial crisis from getting worse?
	Yes, and I expect things to turn around quickly Yes, but it's going to take some time No, but at least it won't make things worse No, because it doesn't address the root of the problem