U.S. Treasury To Lay Out Financial Plan Next Week

The U.S. Treasury Department will likely lay out its framework plan for strengthening banks and dealing with the financial crisis early next week, a Treasury official said on Monday.

The Treasury is working with other government agencies to craft a plan that will allocate the second half of a $700 billion financial rescue fund and further bolster the banking sector while also supporting credit markets and providing relief from home foreclosures.

The Obama administration as soon as this week is expected to first unveil rules for banks receiving U.S. government help, including clarifications on lending and restrictions on executive compensation, a source familiar with administration thinking told Reuters.

The Wall Street Journal reported that U.S. Treasury Secretary Timothy Geithner will lay out the financial rescue plans in a speech next week.