Geithner Defends Bank Rescue Program Amid Warnings

By: Associated Press Email
By: Associated Press Email

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Tuesday, April 21, 2009

Treasury Secretary Timothy Geithner is defending the bank rescue program devised by the Obama administration. This, as the International Monetary Fund predicted U.S. financial institutions could lose $2.7 trillion from the global credit crisis.

Testifying before the rescue plan's Congressional Oversight Panel, Geithner faced questions over the Treasury's public-private partnership investment plan to rid financial institutions of troubled assets.

A watchdog agency report warned Obama administration initiatives could increasingly expose taxpayers to losses and make the government more vulnerable to fraud.

In prepared testimony, Geithner said the new plan "strikes the right balance" by letting taxpayers share the risk with the private sector while at the same time letting private industry use competition to set market prices for the assets.

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