January 30, 2009

The Obama administration aims to roll out a menu of options next week to help stabilize the U.S. banking industry, with government aid tailored to individual banks' needs, a source familiar with the administration's thinking told Reuters on Thursday.

The source, who spoke anonymously because the plan is still being finalized, said the options are likely to include a "bad bank" that could soak up mortgage securities and other distressed investments weighing down banks' balance sheets and holding back new lending.