'Bad Bank' Plan Dropped from Rescue Package, CNBC Reports

By: • Mon, Feb 9 2009, 9:35 PM

CNBC is reporting that the Obama administration's financial rescue plan no longer includes the creation of a "bad bank", though still contains measures to buy up toxic assets.

Citing a source familiar with the plan, CNBC reported that the plan is mostly complete, and requires some minor "tweaks." The source also said funding for the bank rescue plan is unlikely to exceed the $350 billion left in TARP.

The package will be unveiled by Treasury Secretary Timothy Geithner on Tuesday at 11 a.m. EST.