by Laura Conaway

U.S. Treasury Secretary Tim Geithner revealed his strategy for fixing the nation's financial institutions. In a speech today, Geithner listed initiatives designed to ease this essential pair of problems:

Instead of catalyzing recovery, the financial system is working against recovery. And at the same time, the recession is putting greater pressure on banks. This is a dangerous dynamic, and we need to arrest it.

The Geithner plan includes a so-called bad bank (though he didn't call it that himself), a $500 billion to $1 trillion public-private partnership that would buy up toxic assets from banks and work to sell them off; up to $1 trillion for an increased flow of credit for consumers and businesses through the TALF; and a $50 billion program to ward off foreclosures, details to come.

A pair of reactions, after the jump.

 

From Marc Chandler, currency strategist at Brown Brothers Harriman:

Obama's presidential campaign was regarded as near flawless, but over the last few weeks, it has been underwhelming, and today's delayed Treasury presentation is more of the same. The details were largely leaked which essentially sacrifices any element of surprise. There seems to be little that is bold or new that will break the negative psychology. On top of that there is concern that the fiscal stimulus measures, which were ostensibly the reason the Treasury's announcement was delayed a day, may be delayed for another week or so.

The Financial Services Roundtable, which lobbies for banks and credit card companies, liked what it heard:

The plan is bold and large enough to address the problem. By helping banks, small business, and consumers, it speeds targeted relief to all sectors of the economy.