Here it is the Geithner financial rescue plan. It's dealing with "The market of lemons"
I'm posting some self-explanotary images, the way I see it:
I am impressed by this point:
Increased Transparency and Disclosure: Increased transparency will facilitate a more effective use of market discipline in financial markets. The Treasury Department will work with bank supervisors and the Securities and Exchange Commission and accounting standard setters in their efforts to improve public disclosure by banks. This effort will include measures to improve the disclosure of the exposures on bank balance sheets. In conducting these exercises, supervisors recognize the need not to adopt an overly conservative posture or take steps that could inappropriately constrain lending.
If some unidentified potentially insolvent banks created a severe “lemons problem”, that is a situation of asymmetric information which causes money market failure and confidence crisis in inter-banking, interventions must address the causes not the effects. Again during these days interventions addressed only some effects and never the causes. Before doing something we should invite banks, particularly those in favor of which any intervention is made, to publicly disclose their positions and make their balance sheets fully transparent, thus addressing the lemon problem. There is no point in recapitalizing and restarting inter-banks lending, forcing or guaranteeing confidence, if no disclosure is made of mutual positions and off balance sheets operations which are causing money market failure. How can we expect confidence to be back if nobody starts to tell the true story and make an effort to admit mistakes? I think this is what markets and people are expecting before confidence is restored and thus liquidity and solvability problems.