Tags: Geithner | Financial | System | Healing

Geithner: Financial System Healing, but Needs More Work

Wednesday, 10 Feb 2010 06:18 PM

The U.S. financial system averted a meltdown but it is not yet up to full strength, U.S. Treasury Secretary Timothy Geithner said Wednesday.

"The financial system is healing, but still damaged, and we have a lot of repair work still ahead," Geithner said in a prepared statement accompanying a two-page summary of the administration's efforts to stabilize financial markets over the past year.

The Treasury Department released the statement on the one-year anniversary of Geithner's widely criticized unveiling of his plan to rescue the financial sector.

Geithner specifically noted that the $700 billion bailout initiated by his predecessor, Henry Paulson, could turn out to cost taxpayers nothing.

"If Congress joins the president in adopting a Financial Crisis Responsibility Fee, Americans will not have to pay one cent for TARP," Geithner said, referring to President Barack Obama's recent proposal to impose a tax on big banks and the Troubled Asset Relief Program, the bailout's official name.

Obama has proposed a fee on the largest financial companies to collect around $90 billion over 10 years to recoup taxpayer losses resulting from financial bailouts.

The White House has shifted to a more aggressive stance on Wall Street since the Democrats lost a Senate seat in a special election in Massachusetts in January.

The election highlighted voter resentment against big banks and big bonuses in the wake of massive bailouts during the financial crisis.

At the same time, Obama said on Tuesday he doesn't begrudge the chief executives of JPMorgan Chase and Goldman Sachs their bonuses but called their pay "extraordinary."

"I, like most of the American people, don't begrudge people success or wealth. That is part of the free-market system," the president said in an interview with Bloomberg BusinessWeek.

© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
StreetTalk
The U.S. financial system averted a meltdown but it is not yet up to full strength, U.S. Treasury Secretary Timothy Geithner said Wednesday. The financial system is healing, but still damaged, and we have a lot of repair work still ahead, Geithner said in a prepared...
Geithner,Financial,System,Healing
286
2010-18-10
Wednesday, 10 Feb 2010 06:18 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved