The US government announced another bailout package on February 10, 2009 to cleanse the so-called `toxic' assets from bank books and support new lending through an expanded Federal Reserve program. The latest $500 bn-$1 tn bad bank concept is supposed to be financed jointly by the government and the private sector. It will also pump as much as $2 tn into the troubled financial system in a three-pronged strategy to fend off financial collapses and revive credit markets. While announcing the details of the plan, US Treasury Secretary, Geithner warned, "This strategy will cost money, it will involve risk and it will take time. But as costly as this effort may be, we know that the cost of a complete collapse of our financial system would be incalculable for families and for businesses and for our nation." Under the now revamped TARP program, the Treasury would continue to inject capital into banks. In the meantime, the government will purchase preferred shares that could later be converted into common equity.

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