The Obama administration’s plans to stabilise the financial system lack “essential details” and have left the markets uncertain about how it intends to recapitalise the teetering US banking sector, says the International Monetary Fund.
The IMF report, which comes out days before the administration plans to unveil the mechanism of its public-private funding vehicle for removing toxic assets from bank balance sheets, adds to the pressure on Tim Geithner, US Treasury secretary, to provide greater clarity on the bail-out plan.
