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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

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