Geithner: Turning the corner from crisis to recovery

Updated

In testimony yesterday before a Congressional Oversight Panel, Treasury Secretary Timothy Geithner sounded an optimistic note about the state of the economy, stating that financial institutions are stronger after raising billions of dollars in capital. While Treasury plans to "wind down" many of its financial-rescue programs, Geithner encouraged policy makers need to stay vigilant in reinforcing the current level of economic stability, according to The Wall Street Journal.

As the Financial Times notes, financial institutions have repaid more than $70 billion in bailout funds and will repay another $50 billion over the next 12 to 18 months. Geithner even backed a Federal Deposit Insurance Corp. review that is likely to lead to the government either ending funding guarantees or restricting them only to emergencies.

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