Treasury Nominee Geithner to Oversee Bailout Program Including...

Geithner, who is President Barack Obama’s nominee, was not confirmed immediately because he failed to pay his federal taxes. He settled his tax dues shortly before he was nominated by Obama. If confirmed, Geithner will manage the bailout program for the financial industry. A portion of program is expected to focus on reducing the number of foreclosed homes in the country.

Meanwhile, members of the House are expected to decide on its own version of the estimated $825 billion economic recovery program. The program proposals include tax cuts for businesses and individuals, aid for state governments, poor and unemployed, especially those who lost their homes to foreclosure, and the federal government’s direct spending.

The goal of the program is to inject money into the economy to help the country emerge from recession and create as much as 4 million jobs and to abate the flood of foreclosures.

On the other hand, the Congress has authorized Obama to spend the remaining $350 billion bailout fund, which is expected to help owners of distressed properties.

House Speaker Nancy Pelosi said that she is receptive to the possibility of additional government rescue funds for financial institutions and banks. However, she added that taxpayers should get ownership share in return.

It is Geithner who will recommend if additional funds are needed, according to Vice President Joe Biden. He claimed that there are many government-spending proposals in the program that will not work.

Meanwhile, the Democrats attempted to lessen expectations for an immediate economic recovery despite the government intervention to boost the economy, save financial institutions and help owners of repossessed homes.

The Obama Administration has committed to spend more than half of the proposed fund one year and 6 months after it has been released. The spending is expected to include foreclosure prevention.

By Cassiano Travareli