Sunday, December 27, 2009, 7:04AM ET - U.S. Markets Closed.

Why Geithner's Bank Fix Will Fail

Posted Feb 17, 2009 03:43pm EST by Henry Blodget in Investing, Recession, Banking
Related: c, jpm, ^dji, wfc
Treasury Secretary Tim Geithner released his desperately awaited banking-system fix last week...and the market immediately dropped several hundred points. 

Why? 

Because the plan lacked what the market needs most right now: clarity.  And, says our guest Chris Whalen of Institutional Risk Analytics, because it is just another half-measure that will attempt to prop up zombie banks and preserve the status quo. 

Even as Geithner puts the finishing touches on his new hybrid public-private rescue, Whalen thinks the idea is doomed.  But, he says, Geithner needs to do something, soon, or the stock market will continue to collapse.
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