treasury department

The Treasury Department and the Federal Reserve are spending billions of dollars to stabilize the economy.

But where is that money coming from? NPR's Adam Davidson gives Steve Inskeep a lesson on money: It's more than currency — it's about trust and relationships.

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The next move of the Treasury Department and Federal Reserve will be an attempt to boost consumer credit by pumping $25 billion to $100 billion into a new program to be announced later today.

The money will come from the Troubled Asset Relief Program.

The Treasury Department and Federal Reserve are due to unveil Tuesday a new program aimed at increasing the availability of consumer loans, according to published reports.

Christopher Dodd, chairman of the Senate Banking Committee, says he's frustrated with how banks are using funds provided by the government.

He also thinks the Treasury Department has been too slow in addressing the mortgage crisis. Dodd tells Steve Inskeep that Congress may have to reconsider some parts of the rescue plan it approved.

Troubled insurer American International Group got a new, $150 billion deal from the federal government on Monday, as the Federal Reserve and Treasury Department made significant changes to the terms of the company's original bailout.

The government is providing new financial assistance to troubled insurance giant American International Group.

It includes pouring $40 billion into the company in return for partial ownership. The action was announced jointly by the Federal Reserve and the Treasury Department Monday morning.

All told the moves boost aid to the company to around $150 billion.

When the Treasury Department first unveiled its plan to buy stakes in banks last month, the move was heralded as a potential savior for fast-sinking banks and financial firms.

The government's Troubled Asset Relief Program — known as TARP — was designed to thaw the frozen credit markets by, among other things, buying up financial firms' "toxic assets." The Treasury Department says it has given $155 billion to eight banks so far, which has helped them increase short-term lending.

But the department hasn't yet started to buy up problematic mortgage-backed securities.

An opinion article by the former House Majority Leader says that the lame duck Bush administration is rushing through some last-minute regulations that could have "devastating consequences for privacy and e-commerce."

Lucrative government contracts are up for grabs as the Treasury Department scrambles for vendors to fulfill the provisions of the bailout bill passed earlier this month.

Will small businesses get a piece of the contracting action?