Financial Times FT.com

Two-pronged approach breaks from the past

By Krishna Guha and Edward Luce in Washington

Published: March 23 2009 23:55 | Last updated: March 23 2009 23:55

Tim Geithner, Treasury secretary, said on Monday that his toxic asset purchase plan was “completely different” from his predecessor Hank Paulson’s Troubled Asset Relief Program (Tarp) asset purchase plan.

In an interview with the Financial Times, Mr Geithner said a key difference was that his plan would work in conjunction with bank stress tests and the provision of standby government equity to stabilise the financial system and restore lending.

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