In what could be a major development for the future of the financial services sector, the incoming Obama administration is expected to overhaul the government’s financial bailout and Troubled Asset Relief Program.
A Page One report in the Washington Post today says Timothy F. Geithner has been holed up for eight weeks working on a new strategy for TARP. The new plan could be made public before Geithner’s confirmation hearings for secretary of the Treasury Department begin on Jan. 15 or thereabout.
According to the Washington Post, the essential elements of the revised bailout plan are expected to be uses of TARP funds to:
* Help homeowners avoid foreclosure;
* Unclog the credit markets by helping to finance loans to consumers, small businesses and municipalities;
* Take additional stakes in financial firms while forcing the companies receiving federal aid to submit to greater restrictions on executive compensation than were imposed by the Bush administration; and
* Establish a new bureau within the Treasury to manage TARP in an attempt to improve the program’s operations and oversight.
Another $350 billion of TARP funds have yet to be allocated by the Treasury Department and Congress. GMAC and Chrysler LLC are among the companies engaged in financial services that have received TARP capital infusions.
Good question Frank.
The lender has complete control over the risk models and the terms they load.
They control all aspects of the loans they will accept and the dealer has no way to get around them. The dealer has no access to the lenders data that is loaded in the Lender Selection .
We designed the system with a Dealer and Lender section. Each separate from the other with the exception that the lender if they are selected by the Customer/Dealer can then have access to the Dealer section to see what the dealer has put together for the Customer.
The Lender could even have audio link up with the Customer as they set in the dealer’s office. It’s like the Customer, Dealer and Lender are all in the same room discussing the deal.
Even with the new legislation that Obama is trying to pass right now our system would work because the lender has final control over everything.
I believe most Dealers are basically honest and want to do the right thing while they make a living. It has too work for all parties and our system brings all the parties to the table.
Bill