TIMOTHY GEITHNER

The United States on Monday offered generous financing for private investors to help cleanse banks of up to $1 trillion in toxic assets that are blocking lending and worsening a deep U.S. recession.

President Barack Obama said he believes systemic risks are still to be found in the financial system as he discussed an upcoming plan to be issued by his administration to take “toxic assets” off the balance sheets of financial companies in an interview.

U.S. Treasury Secretary Timothy Geithner said on Sunday that help from the private sector was critical to get toxic assets off banks' balance sheets and help resolve a credit crisis.

U.S. Treasury Secretary Timothy Geithner will announce details on Monday of the Obama administration's plans for removing so-called toxic assets from the banking system by enlisting private investors in the effort, the Treasury Department said on Sunday.

Bondholders holding some $27 billion of General Motors Corp debt on Sunday sent a letter raising urgent concerns about GM's stalled debt restructuring talks to the White House task force overseeing federal funding for the automaker's turnaround effort.

Wall Street's attempt to recover further from 12-year lows faces its biggest test yet this week in the Treasury's long-delayed bank rescue plan.

Bondholders holding some $27 billion of General Motors Corp debt on Sunday sent a letter to the White House task force overseeing the bailout of the auto industry, to register concern with the lack of progress in GM's debt restructuring talks.

Wall Street's attempt to recover further from 12-year lows faces its biggest test yet this week in the Treasury's long-delayed bank rescue plan.

The U.S. government will roll out next week a three-pronged bid to cleanse the U.S. financial system of toxic assets clogging banks' balance sheets, a source familiar with the plan said on Saturday.

The U.S. government will roll out next week a three-pronged bid to cleanse the U.S. financial system of toxic assets clogging banks' balance sheets, a source familiar with the plan said on Saturday.

The U.S. government will announce as soon as Monday a long-awaited plan to try to get bad assets off the books of banks, a cornerstone of its efforts to tackle the credit crisis, The Wall Street Journal reported.

The U.S. government will announce as soon as Monday a long-awaited plan to try to get bad assets off the books of banks, a cornerstone of its efforts to tackle the credit crisis, The Wall Street Journal reported.

Wall Street's attempt to recover further from 12-year lows faces its biggest test yet next week in the Treasury's long-delayed bank rescue plan.

The U.S. House of Representatives swiftly passed a bill on Thursday to recoup controversial bonuses paid to American International Group Inc as Treasury Secretary Timothy Geithner tried to calm the furor by taking responsibility.

The Obama administration pledged up to $5 billion on Thursday to aid stressed auto suppliers crucial to the survival of U.S. car manufacturers.

A nagging question haunts U.S. government efforts to revive a dormant financial system: Can a crisis that started because of excess credit be solved with more debt? The typical answer from economists is a qualified no. That is, No, more credit will not make the problem go away. But yes, the government should do its best to restore bank lending to prevent an even worse economic outcome.

President Barack Obama is grappling with the AIG bonus furor by both accepting responsibility for the government's failure to head off the payments and blaming it on the big mess he inherited.

The head of AIG said on Wednesday he was trying desperately to prevent the company from collapsing when he allowed the payment of $165 million in bonuses that have stoked widespread public outrage.

The American International Group bonus payment debacle could not have come at a worse time for a U.S. government that desperately needs to attract up to $2 trillion of private capital for its latest efforts to repair a crippled financial system.

The head of AIG said on Wednesday the cold realities of competition compelled the insurer to pay $165 million in bonuses, but angry lawmakers insisted the money belonged to taxpayers and vowed to get it back.

The head of AIG said on Wednesday the cold realities of competition compelled the insurer to pay $165 million in bonuses, and acknowledged that bailout-weary Americans' patience was running thin.