Geithner Extends Bailout Through October
Treasury Secretary Timothy Geithner told Congress in a letter Wednesday that the administration would extend the $700 billion financial bailout package through October 2010.
"The recovery of our financial system remains incomplete," wrote Geithner. "As we wind down many of the government programs launched initially to address the crisis, it is imperative that we maintain this capacity to respond if financial conditions worsen and threaten our economy."
Geithner noted that the administration did not expect to go through more than $550 billion of the funds and that financial commitment would be restricted to three areas: stabilizing the housing market by limiting foreclosures, providing capital to small lenders, and bolstering the Term Asset-Backed Securities Loan Facility, which would benefit consumers and small businesses.
After the billions spent helping large corporations and other failing industries, it's a good sign that the extended commitments will be largely geared toward helping individuals and small business owners, those most likely to have been forcefully impacted by the economy.