WASHINGTON (CNNMoney.com) - The controversial $700 billion federal bailout program will be extended through Oct. 3, 2010, Treasury Secretary Tim Geithner said Wednesday.
The Troubled Asset Relief Program will be scaled back and spending limited to newer programs aimed at stopping foreclosures, making loans to small businesses and propping up the credit markets to make loans more available.
"History suggests that exiting prematurely from policies designed to contain a financial crisis can significantly prolong an economic downturn," Geithner wrote in a letter to congressional leaders. "We must not waver in our resolve to ensure the stability of the financial system and to support the nascent recovery that the administration and the Congress have worked so hard to achieve."
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