New York (CNNMoney.com) - Treasury Secretary Tim Geithner told lawmakers Tuesday that banks that took the most risks during the financial crisis, and required government aid, should pay the most toward recouping bailout costs.
In prepared testimony for the Senate Finance Committee, Geithner said the proposed Financial Crisis Responsibility Fee could raise about $90 billion over 10 years.
"We designed the fee so that it would fall most heavily on firms that fund riskier activities with less stable forms of funding," Geithner said in his testimony, adding that over 99% of banks would be excluded from the fee.
Updated: 10:34 a.m.
New York (CNNMoney.com) - Chinese and U.S. officials are reportedly close to a deal on boosting the value of China's currency, the yuan - the first step to making U.S.-made goods more competitive versus Chinese exports.
U.S. Treasury Secretary Timothy Geithner was in China for a surprise meeting this week, and Chinese President Hu Jintao is due in Washington next week.
"It's basically seems like it's a done deal," said foreign exchange expert Ashraf Laidi, chief market strategist for CMC Markets.
The agreement is widely expected to result in an immediate 2% to 3% rise in the yuan - a fairly modest step. What could make the agreement significant, however, is if China agrees to future increases as the currency moves toward being freely traded for the first time.
New York (CNNMoney.com) – Treasury Secretary Tim Geithner said he expects the unemployment rate to remain "unacceptably high" for a long time, even as the economy recovers and job growth slowly resumes.
"I think the key thing that's going to happen is the economy's going to start creating jobs again," Geithner said in an interview aired Thursday on NBC's "Today." "But the unemployment rate is still terribly high, and it is going to stay unacceptably high for a long period of time."
The comments came ahead of the government's monthly jobs report, which is due Friday. That report is expected to show that U.S. employers added 190,000 jobs in March, but the unemployment rate remaining at a persistently high 9.7%.
"It is going to take a long time to bring it down because of the damage of the recession," Geithner said of the jobless rate.
(CNN) – Toyota Chairman Akio Toyoda testifies before the House Oversight and Government Reform Committee Wednesday about the gas pedal recall.
Transportation Secretary Ray LaHood and National Highway Traffic Safety Administration Administrator David Strickland will also appear before the committee. Live coverage of the Toyota hearing begins at 11 a.m. ET: Watch it live.
Other live highlights Wednesday on CNN.com:
- Secretary of State Hillary Clinton testifies before two congressional committees at 10:30 a.m. ET and 2:30 p.m. ET. Watch the hearings live.
- Treasury Secretary Timothy Geithner testifies before the House Budget Committee at 10 a.m. ET. Watch the hearing live.
- Federal Reserve Chairman Ben Bernanke testifies before the House Financial Services Committee on "Monetary Policy and the State of the Economy" at 10 a.m. ET. Watch the hearing live.
- President Obama meets with business leaders at 1 p.m. at the St. Regis Hotel here in the nation's capital. Watch the meeting live.
This schedule is subject to change.
Follow Mark Preston On Twitter: @prestoncnn
New York (CNNMoney.com) - Treasury Secretary Timothy Geithner told lawmakers Wednesday that he had no involvement in an apparent attempt by government regulators to withhold crucial information about AIG's bailout from the public.
"I had no role in making decisions regarding what to disclose," Geithner testified at a hearing held by the House Oversight Committee Wednesday.
New York Fed officials instructed AIG not to disclose more than a dozen controversial transactions to the Securities and Exchange Commission in November 2008. At the time, Geithner was the president of the New York Fed but he said he had recused himself from the day-to-day operations at that time because of his nomination to be Treasury secretary.
At least two lawmakers weren't buying Geithner's denial.
WASHINGTON (CNNMoney.com) – Treasury Secretary Tim Geithner said on Thursday that he had no choice but to pay top dollar to business partners of troubled insurer AIG to avert a deeper financial panic last year.
Geithner defended regulators' actions to prop up American International Group (AIG, Fortune 500) with $62.1 billion that was essentially funneled to 16 banks that were counterparties to AIG insurance contracts.
"I don't understand why this is so complicated," Geithner told the Congressional Oversight Panel at a hearing on Capitol Hill. "You either prevent default, because default would be cataclysmic – or you don't. If you selectively default on any, the thing will come crashing down."
Washington (CNN) - Economic growth and job creation remain the government's top priorities, despite a federal deficit that is "too high," Treasury Secretary Timothy Geithner said in an interview broadcast Sunday.
Geithner called the latest report of economic growth in the third quarter "good news," but in the interview taped Saturday with the NBC program "Meet the Press," he stopped short of declaring the recession over.
The Obama administration's two "central imperatives" were restoring sustainable economic growth and creating jobs, Geithner said. Lowering the deficit could then occur as the economy recovers fully, he said.
The deficit will "have to come down; it's too high," Geithner said.
Asked how to lower the deficit, Geithner acknowledged that the government faces "hard choices" but wasn't ready to decide on raising taxes. He reaffirmed President Barack Obama's campaign pledge against increasing the tax burden on those making less than $250,000 a year.
"We're going to have to bring our resources and our expenditures more in balance," he said, adding that economic growth is a pre-condition for job creation and eventual budget balancing. "Right now we're focused on getting growth back on track."
WASHINGTON (CNN) - The U.S. economy is no longer on the edge of collapse, but Americans face "tough choices" in the future on reducing the expanded deficit, Treasury Secretary Timothy Geithner said Sunday.
Appearing on the ABC program "This Week," Geithner said he expected continued economic improvement for the rest of 2009 and a reversal in job losses the following year.
"What you're going to see first is growth turn positive," Geithner said. "Then you're going to see the pace of job losses slow significantly further," with job creation possible next year.
Economic collapse is "not going to happen," Geithner said.
He warned, though, that emergency steps including the bailout plan last year and the economic stimulus bill this year are expanding the federal budget deficit to unsustainable levels.
"We will not get this economy back on track, recovery won't be strong and sustained" if the deficit isn't reduced in the future, Geithner said.
"We can do this - it just requires the will to act," he said, calling an overhaul of the health-care system one important step by reducing costs for both the government and average Americans.
Geithner refused to rule out future tax increases, saying the government would take whatever steps were necessary to reduce the deficit once recovery is established.
(CNN) – Treasury Secretary Tim Geithner is set to meet with several high-ranking members of the Chinese leadership this week, marking the Obama administration's first major overture to the powerhouse nation.
Geithner left Saturday for meetings in Beijing, where he'll discuss ways to strengthen relations between China and the United States, according to the Treasury Department.
China is one of America's most important trading partners, and its economy is tightly intertwined with efforts to reverse the global downturn.
But the relationship is also often a source of tension. Chinese exports to the United States have dominated trade between the two nations since the 1980s. The U.S. trade deficit with China rose again in March to $15.6 billion, the Commerce Department reported.