US Treasury to prop up housing under revamped bank bailout

by Jitendra Joshi Jitendra Joshi
Sun Feb 8, 3:56 pm ET

WASHINGTON (AFP) – President Barack Obama's administration will Tuesday unveil a new plan for the frozen banking sector including at least 50 billion dollars to shore up the housing market, officials said Sunday.

National Economic Council director Larry Summers said the plan to be announced by Treasury Secretary Timothy Geithner would help stabilize banks and encourage them to resume lending.

"There will be support for the credit markets more generally," he told ABC's "This Week" program.