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Hotel Lawyers pondering the “black box” of Geithner’s “bad bank”

11 February 2008

Hotel Lawyers looking for liquidity in hotel finance. As Congress reached a $789.5 billion compromise on the almost stimulus bill, Treasury Secretary Timothy F. Geithner testified for a second day in front of a Senate panel and was pressed to reveal more details on how the Administration’s program would work.

It still looks like a “black box” where no one knows what’s going on inside. This won’t help solve the problem.


Second day of Senate hearings probes for more detail

Mr. Geithner was brought back Wednesday morning by the Senate Budget Committee. The Senate panel members expressed serious concern about the lack of details provided by the Treasury Secretary in the “unveiling” of the financial rescue plan on Tuesday. They called for a straightforward, clear and detailed presentation, noting they had not received this yesterday.

The “plan” is still a secret

Geithner did not provide any further details to the Senate panel. Instead, he repeated his mantra from Tuesday when confronted about complaints on lack of detail. Mr. Geithner would only say that the Treasury Department did not want to present a plan that he would have to be abandoned, referring to the change of directions by Henry Paulson when he first announced that the bailout program would buy troubled assets from banks, but then changed to a capital injection program.

So we are still drifting.

Other recent articles on the economy and its impact on the hotel industry, include:
Other articles on the Global Financial Crisis & Recovery and Outlook & Trends

For other articles about the Global Financial Crisis and where this all takes us, here are some recent articles and links. You can also go to Global Financial Crisis & Recovery and Outlook & Trends on www.HotelLawBlog.com

This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. We’ve done more than $50 billion of hotel transactions and more than 100 hotel mixed-used deals in the last 5 years alone. Who’s your hotel lawyer?

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Our Perspective. We represent developers, owners and lenders. We have helped our clients as business and legal advisors on more than $50 billion of hotel transactions, involving more than 1,000 properties all over the world. For more information, please contact Jim Butler at jbutler@jmbm.com or 310.201.3526.

Jim Butler is one of the top hospitality attorneys in the world. GOOGLE “hotel lawyer” or “hotel mixed-use” or “condo hotel lawyer” and you will see why.

Jim devotes 100% of his practice to hospitality, representing hotel owners, developers and lenders. Jim leads JMBM’s Global Hospitality Group® — a team of 50 seasoned professionals with more than $50 billion of hotel transactional experience, involving more than 1,000 properties located around the globe. In the last 5 years alone, Jim and his team have assisted clients with more than 100 hotel mixed-use projects — frequently integrated with energizing lifestyle elements.

Jim and his team are more than “just” great hotel lawyers. They are also hospitality consultants and business advisors. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them.

Contact him at jbutler@jmbm.com or 310.201.3526. For his views on current industry issues, visit www.HotelLawBlog.com.