AP | Yahoo News | 01/04/2010 | 06:25pm IST
Treasury Secretary Timothy Geithner said Thursday it’s "deeply unfair" that some financial institutions that got taxpayer-paid bailouts are emerging in better shape from the recession than millions of ordinary Americans. He acknowledged public outrage over that and said people watched with disdain as Washington protected high-risk banks and investment houses, even as the national unemployment rate was soaring to double-digit levels for the first time in a generation. But in a nationally broadcast interview, Geithner also argued that President Barack Obama had no choice when confronted with a financial crisis. "As the president has said, we had to do some very unpopular things," Geithner said. "People looked at what had happened." "It’s not fair. It’s deeply unfair," he said. "He (Obama) had to decide whether he was going to act to fix it or stand back … and that would have been calamitous for the American economy."
The government eventually embarked on a program of assisting the threatened financial institutions, and the sweeping, multibillion-dollar Troubled Asset Relief Program (TARP) created as a bailout engine. Geithner also said that administration officials are "very worried" about recovering the more than 8 million jobs lost in the recession. But he noted that business growth has been improving and expects the economy "is going to start creating jobs again." The secretary agreed that the national jobless rate — now at 9.7 percent — is "still terribly high and is going to stay unacceptably high for a very long time" because of the damage caused by the recession. "Just because this was the worst economic crisis since the Great Depression," Geithner said, "a huge amount of damage was done to businesses and families across the country … and it’s going to take us a long time to heal that damage. "
ABC News | Dec. 7, 2009
The $700 billion financial bailout has caused controversy and outrage from the moment it was enacted last fall, an attempt by the Bush administration to save the financial system from a collapse that could imperil the overall economy. A year later, critics argue, the bailout has only helped Wall Street, not Main Street. But the Obama administration Monday revealed that the program’s 10-year cost to taxpayers would be $200 billion less than expected — and now a chunk of the remaining funds could be used to help put Americans on Main Street back to work. “We’ve been very successful in bringing stability back to the financial system and that’s going to create very substantial resources for the president and the Congress to devote to the immediate priorities to the country,” Treasury Secretary Tim Geithner said in an interview with ABC News’ Jake Tapper.
The administration’s immediate priorities include job creation and continuing to stimulate economic growth, issues that the president will address in a speech on Tuesday. Obama is expected to focus on three main areas: energy, small businesses and infrastructure. House Democrats are reportedly eying a $70 billion chunk of bailout money to use in any jobs growth effort. “Having gotten the financial crisis under control, having finally moved into a positive territory when it comes to economic growth, our biggest challenge now is making sure that job Continue reading
Calculatedrisk.com | 14/11/2009 | 12:23 AM
When Pacific National Bank of San Clemente was closed by regulators Friday, the TARP lost $4.12 million (ht Matt Padilla). Last week the TARP lost $298.7 million when San Francisco-based United Commercial Bank (UCBH Holdings) failed. It looks like TARP losses are becoming a trend … and, oh, the cost to the FDIC Deposit Insurance Fund (DIF) for the three bank failures today is estimated to be almost $1 billion.