US stock futures fall; uncertainty on “bad bank” plan
U.S. stock futures fell on Tuesday on uncertainty about a White House financial rescue package after a CNBC report of an altered form of a “bad bank” plan to buy toxic assets from commercial banks.
Investors were waiting for a speech later by U.S. Treasury Secretary Timothy Geithner in which he is expected to unveil details about the plan.
CNBC initially reported the “bad bank” aspect was being dropped, but later updated its report to say a new form of the plan will essentially combine public and private resources to take bad assets off banks’ books.
Funding for the rescue plan is unlikely to exceed the $350 billion currently available under the Troubled Asset Relief Program (TARP), CNBC reported