Financial Roundup: Bailout Details Monday, Treasury Overpaid, and More

Geithner to announce new bailout plans Monday -- What could be the next major turn in the bailout story is expected Monday when Treasury Secretary Timothy Geithner announces new details. On the table are tighter restrictions for bailed-out banks and using the Federal Reserve instead of a new "bad bank" to buy up toxic debt. [Source: The Wall Street Journal]

Bush's Treasury overpaid for assets -- Congressional investigators claim that Treasury last year overpaid by as much as $78 billion for bailout assets. Treasury had invested $254 billion for preferred stock that actually had a market value of $176 billion. [Source: The Washington Post]

Pay caps? Forgedaaboutit! -- Despite the hoopla over President Barack Obama's pay caps for bank executives getting bailout money, most, including execs at Goldman Sachs Group Inc., and JPMorgan Chase & Co., won't be affected. The $500,000 a year pay limit only applies to top executives whose banks need "exceptional" assistance. [Source: Bloomberg.com]

Tarheel prosecutor probes Bank of America -- The North Carolina Attorney General is seeking documents from Charlotte-based Bank of America regarding Merrill Lynch's last-minute bonuses to its executives. BofA bought Merrill Jan. 1. [Source: Charlotte Observer]

Wall Street bankers in sex probe -- ABC News "20/20" program is expected tonight to reveal details of a prostitution ring involving the so-called "Manhattan Madam" who charged $2,000 an hour. Her clients allegedly included investment bankers and lawyers. [Source: ABC News]

Small banks to sell debt cheaper -- Plans are emerging for capital-starved small banks to pool debt to entice buyers. The plan would make it easier to buy debt and fees would be shared among participating banks. [Source: American Banker]
Big Japanese bank cuts outlook -- Mitsubishi UFJ Financial is cutting its earnings outlook, in part due to cross-shareholdings it has with other troubled banks. [Source: The New York Times]