New York (CNNMoney) – The fallout from lawmakers' delay on the debt ceiling is getting real.
Treasury Secretary Tim Geithner said Monday that he would start taking "extraordinary measures" this week to keep the country's debt below its legal limit.FULL STORY
Washington (CNN) - An escalating national debate on federal deficits and government spending focused Sunday on the upcoming deadline for Congress to increase the amount of money that the United States can borrow.
Treasury Secretary Tim Geithner said congressional leaders told President Barack Obama last week that they will raise the federal debt ceiling when it reaches its limit, which is expected to happen sometime within the next 10 weeks.FULL STORY
NEW YORK (CNNMoney) - Treasury Secretary Timothy Geithner told congressional leaders Monday that he now expects U.S. debt to hit the country's $14.294 trillion debt ceiling "no later than May 16."
"Although these projections could change, we do not believe they are likely to change in a way that would give Congress more time in which to act," Geithner said in a letter.FULL STORY
New York (CNNMoney.com) – Would making the rich pay higher taxes next year hurt the economy?
That question underlines one of the trickiest fiscal questions facing Washington policymakers: What to do about the 2001 and 2003 Bush tax cuts, which are set to expire at the end of the year.
President Obama wants to let the cuts lapse for joint tax filers who make at least $250,000 ($200,000 for individuals) but extend them for everyone else. That means the top two tax rates would revert to where they were in the late 1990s: The 35% rate would go to 39.6% and the 33% rate would go to 36%.
New York (CNNMoney.com) - Treasury Secretary Tim Geithner defended the government's bailout of the financial system on Tuesday, saying it has been a "critical" part of the economic recovery and will ultimately cost less than expected.
Geithner is testifying before the Congressional Oversight Panel, the main watchdog for the Troubled Asset Relief Program, or TARP. The government enacted TARP in 2008 at the height of the financial crisis. The program is due to expire in October.
While the economy remains challenged, Geithner said TARP and other "extraordinary actions" taken to combat the financial meltdown "have helped stabilize the financial system and restore economic growth."
Geithner acknowledged that some of the government's efforts were "unpopular." The program, initially funded at $700 billion, was used to pour billions of tax dollars in to troubled Wall Street banks, insurance giant American International Group and the auto industry.
But he argued that such steps were "essential" to contain the crisis and that they have improved conditions for homeowners, consumers, businesses, and state and local governments.
Washington (CNNMoney.com) - In what may be the bluntest assessment by a high-ranking White House official of China's exchange rate policy, Treasury Secretary Tim Geithner said Wednesday that China's undervalued currency makes the nation dependent on U.S. monetary policy.
"I think China will be better; they're stronger as an independent country if they're not running an exchange rate policy that, essentially, has the Federal Reserve of the United States setting monetary policy in China," Geithner told CNN's John King in an interview taped for "John King, USA." The interview will air at 7 p.m. ET.
Geithner added that he believes that over time the Chinese will appreciate their currency.
"I think many of them understand and they'll come to decide that it's in their interest, as they move," Geithner said. "I think it's quite likely they move over time."
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NEW YORK (CNNMoney.com) - Treasury Secretary Timothy Geithner said Tuesday he expects a wave of banks to soon return government bailout money to taxpayers.
"It will depend on the institution, but for major banks in the country I think that money will come back relatively quickly," he said.
Speaking before the annual meeting of Securities Industry and Financial Markets Association in New York, Geithner offered few details on when those repayments could happen and from which companies.
Lenders that received taxpayer aid under the Treasury's Troubled Asset Relief Program, or TARP, have already returned nearly $71 billion to taxpayers, helped by renewed interest by private investors in the banking industry.
Still, some $134 billion remains invested in hundreds of community and regional banks as well big bailout recipients like Citigroup and Bank of America.
NEW YORK (Fortune) – The stock market's rally serves as "broad validation" of the Obama administration's financial rescue efforts, Treasury Secretary Tim Geithner said Monday.
But Geithner also stressed that the economy faces "an enormously challenging period ahead" - a view that was vigorously seconded by a panel of economic skeptics headlined by Nouriel Roubini, the economist known as Dr. Doom.
The comments came at an economic discussion sponsored by Time Warner, which is the parent company of Fortune and CNNMoney.com.
All of the panelists agreed the nation's financial regulatory apparatus is a mess, with Geithner calling the overlap among oversight agencies a "spectacle."
The administration is scheduled to outline its regulatory reform plan Wednesday. Geithner said the program, to be unveiled by President Obama, will result in a financial system that's more stable and more efficient. He added that avoiding future crises should make the finance business "a little less exciting."
Geithner said the financial system is in "the early stages of repair" following a round of capital-raising at big banks and other financial institutions.
WASHINGTON (CNNMoney.com) – The severe decay in the global economy is easing but serious problems still loom, Treasury Secretary Tim Geithner said Friday.
"We are right to be somewhat encouraged, but we would be wrong to conclude that we are close to emerging from the darkness that descended on the globaleconomy early last fall," Geithner said in written comments.
Geithner met with finance chiefs from the G-7 countries who have convened in Washington to talk about their continued efforts to stimulate economies.
Since a high-profile G-20 meeting in London earlier this month, several countries - particularly Japan - have boosted their economic recovery programs, Geithner said.
In addition, Poland and Colombia have said they will join Mexico to apply for backstop financing from the International Monetary Fund, a global agency charged with helping countries facing economic distress.