The US corporate finance sector has undergone thick turmoil in the last one decade. To an extent, the current chaos should have been seen coming, from afar. With consecutive catastrophic losses, rising and overpowering unemployment, and little government control in how institutions bear risk, it just had to happen. Bad stuff has happened, jobs have been lost, careers thwarted, and portfolios shredded. Yet the worst has not happened and still can.
Realizing this, the US government has seen the need to bailout some of the key financial institutions and help them regain a footing in the cutthroat market. The economy is very sore now, having watched the crisis unfold and then begin to bite. As such, the US Treasury bailout plan has a multifaceted role of rescuing banks, protecting their consumers, and restoring the confidence of investors in the market. These three roles must be met and played by the government if the economy is to pick momentum soon and wipe itself of the shame of the mortgage crash.
In February this year, US Treasury Secretary Timothy Geithner announced the administration’s set of measures that