Vietnam national university of economics and business

2.5.2. America's actions

• 
  The government will use the tax revenue of the people in combination with FDIC financial activities to co-invest with the private sector to buy back bad assets in the balance sheets of banks. This will maximize the purchasing power between the public and private parties and the US budget will be exploited in the best way.
  
• 
  Sharing risks as well as profits among private entities participating in the program. In addition, the PPIP program will aim to ensure that if there is a loss, the private investment side will suffer first and foremost, and if there is a profit, the taxpayer will benefit.
  
• 
  To avoid the possibility of the government paying too high or too low a price for bad assets, participating in the acquisition of assets by investors like this creates a certain degree of competition, so that these assets will be determined at their true value. The program to eliminate bad assets on the balance sheets of banks will be implemented with an amount equal to half of the total amount from TARP. In addition, the side of the private sector that can participate is also expanded to include private investors, pension funds, insurance companies and other long-term investment companies. The process of buying bad assets begins with identifying the past due loans that banks want to sell. After that, these bad debts will be put to auction by the FDIC, the private investment block that wins this bad asset auction will be supported by the FDIC and the Ministry of Finance with an additional amount of money to have may complete the acquisition of the bad asset.
  

• 
  September 19, 2008: US government officials started implementing a 700 billion USD plan to help banks get rid of bad debts.
  
• 
  October 6, 2008: The Fed announced a plan to buy a large amount of short-term debt from companies to open up the frozen money market.
  
• 
  October 14, 2008: The US government used $250 billion in a 700 billion package
  
• 
  November 9, 2008: Insurance giant AIG has more financial support from the US government, bringing the total amount of relief money to $150 billion (initial relief is $85 billion).
  
• 
  11/12/2008: abandoned the plan to use part of the 700 billion USD to buy back bad debts of banks. Instead, the government will focus on buying shares of troubled lenders
  
• 
  November 15, 2008: The summit of the world's richest economies was held in Washington (USA), chaired by President Bush.
  
• 
  November 23, 2008: The key financial regulators of the United States, including the Department of the Treasury, the Federal Reserve Board (FED) and the Federal Deposit Insurance Corporation (FDIC) announced repeated measures. stable at Citigroup Inc. The Ministry of Finance will spend 20 billion USD from the 700 billion USD package to support liquidity for this bank with the world's widest service network. Before that, Citi received $25 billion and was one of the first banks to receive support from the US Government.
  
• 
  November 25, 2008: a new solution package with a total amount of up to 800 billion USD was announced
  
• 
  January 13, 2009: US President-elect B.Obama asked the National Assembly of this country to disburse another $350 billion in the 700 billion worth of the Relief Program for Troubled Assets (TARP) to help the United States. deal with the financial crisis.
  
• 
  January 15, 2009: The US Senate voted to allow the government to further disburse $350 billion in economic stimulus with a vote-to-blank ratio of 52/42. The other half of the $700 billion economic stimulus package has been approved to buy back struggling assets in the US.
  
• 
  Early February 2009: U.S. Treasury Secretary Timothy Geithner has just unveiled a comprehensive bank bailout plan worth at least $1.5 billion with the goals of reviving credit markets. strengthen banks and actively support homeowners and small businesses; and with this implementation new and higher standards of transparency and accountability are introduced.