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FBN's Charlie Gasparino on Treasury secretary Timothy Geithner's advice to Europe for saving the banking system.
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Breaking news on what the president and the administration will push for.
In terms of Europe from our -- Charlie Gasparino judged by telephone now what's an exclusive reporting what have you found out Charlie.
This is -- actually because you've ever -- -- -- definitely US banking crisis would.
What what dated Treasury Secretary Paulson did with day and I guess -- New York Fed Chairman Geithner did.
They reached up a Wall Street to see what -- what they would they would so what they would do.
That's exactly what they're doing now what I in the stand.
Is that Wall Street is telling Geithner and Geithner is telling the European leaders we much you guys have to do.
Take it take a page out of my -- book that Geithner playbook and do a US pop style bailout what does that entail well as the president said.
Capital injections but a lot more they're talking about even expanding deposit insurance remembered.
That's what they video they were rated deposit insurance with a 415850000.
Out of 250 what else they do they get -- guarantees all the bad loans at Citigroup.
Were contained in court and off.
-- would be debate that's what they're -- and it is a pretty interest been.
Development this is that going on I would say for the last couple weeks had a like -- -- again Wall Street guys dealing directly.
With the white house with Geithner.
Are basically tell me this and it is an interesting development because they really believe you know harp is very controversial here don't write your politicians.
You know -- the worst thing in the world.
They believe it worked its stabilized they believe meaning meaning the White House a lot of -- leaders believe it's stabilized the banking system.
You know this is about confidence what you raise deposit insurance.
Well guess what you don't wanna run on the bank you want people just pulling money out of banks that's what they're telling -- -- -- -- I don't think they have the pocket insurance.
-- -- those European banks they're telling them to start start doing that now but there's a lot of other measures loan guarantees obviously.
Instead of more integration between the banking system but the bears in the in the eurozone and that that the -- -- -- These capital member capital injections.
Was -- talks started out as a plan to buy the toxic assets from the banks to inject in the capital bike by and they could forget that just give -- the money.
That's what they're calling for -- there.
You know it's interesting and let me ask you one thing about -- Charlie I was listening to the the -- -- -- just went -- -- -- -- -- -- -- -- -- None of those things that the White House is pushing for and have already been tried in Europe -- Europe seems to have trust -- everything but none of these things right.
There tension and that's what's driving the White House I know based on the conversation mom -- people who are talking with Geithner it's driving him close speak to him -- They are just -- because -- this overstate the White House police.
Whether you know we we can debate the -- efficiency efficacy this'll date but the White House believes that that play book that was developed by Geithner as New York fed president.
By Hank Paulson as Treasury Secretary and the under President Bush.
They believe that worked they believe that stabilize the banking system.
Prevented and also developed by we should point out Ben Bernanke who's been Fed Chairman is well that that work that's stabilize the banking is Benedict got.
You know we didn't we cannot have a Great Depression we had a Great Recession we had a banking crisis we had.
-- severe job losses but nothing.
They believe close to nineteen you know what we're what occurred in the 1990 -- I think there and the banks pay back the money and the banks.
Pay back the money we can debate that too there's a little you know well there's a little full PO fishing cabin with that but but if they don't believe that worked.
That is the playbook they're telling European leaders.
That's which you have to do over there Starwood capital injections but I -- that you could rattle off each remedy.
Deposit insurance is cheap why is that well -- runs on the banks compete one of the problem with Citigroup I remember when they.
When he came -- -- second round of bailouts and Citigroup.
Was people who -- actually starting to pull money at a Citigroup there was a run.
I'm the biggest bank in the world and you really too early in the United States at the time.
If you can't survive people -- -- out.
So you're gonna go -- and push this person com -- I know he's picked up the -- I know that because regardless of whether he goes they're not.
Here's what I think and -- I believe.
That that the US policy makers are -- -- are gonna play an increasingly.
More active role as they really believe.
That CEO we are -- a -- our economy is slowing down for a a lot of macro reasons here including but I think the failure fiscal policy but they really believe the European situation.
Has the potential to make it to push -- back in a very severe recession.
-- -- Very good reporting as always thanks and they all wanna later in the day -- -- desperate out if you just joining us sub reporting exclusively after the president made his comments about.
Europe and our economy and everything else.
Charlie reporting that the Treasury Secretary Tim Geithner is now pushing Europe to basically copy us and go with does something.
Akin to a TARP program before Europe this is a developing story could be a very big store in fact we'll keep covering here Fox --
