Geithner on How We Tested the Big Banks
Treasury Secretary Geithner is on a roadshow to prepare the markets for the results of the stress test.
Last night, he was on Charlie Rose (PBS) talking about the benefits of the stress tests:
There was also an Op-Ed piece in the NY Times written by Treasury Secretary Tim Geithner on “How We Tested the Big Banks.” Definitely worth read!
THIS afternoon, Treasury, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Federal Reserve will announce the results of an unprecedented review of the capital position of the nation’s largest banks. This will be an important step forward in President Obama’s program to help repair the financial system, restore the flow of credit and put our nation on the path to economic recovery.
The president came into office facing a deep recession and a damaged financial system. Credit had dried up, forcing businesses to lay off workers and defer investment. Families were finding it difficult to borrow to finance a new house, buy a car or pay college tuition. Without action to restore lending, we faced the prospect of a much deeper and longer recession.