Geithner: $110B Left in TARP War Chest

Treasury won't ask Congress for more; defends slack lending
By Kevin Spak,  Newser Staff
Posted Apr 21, 2009 10:53 AM CDT
In this March 24, 2009 file photo, Treasury Secretary Timothy Geithner, left, accompanied by Federal Reserve Chairman Ben Bernanke, testifies on Capitol Hill.   (AP Photo)
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(Newser) – Some $109.6 billion remains in the government's $700 billion bailout, Treasury Secretary Timothy Geithner today told TARP's congressional oversight chief, Elizabeth Warren. The Treasury sec says that's plenty—he expects banks to repay about $25 billion over the next year, and won't ask Congress for more. Geithner also defended weakened bank lending, saying "In recessions following a long period of substantial borrowing, demand for credit falls much more sharply."

Geithner stressed that $355.4 billion of the money was spent by the Bush administration, including $117 billion committed to AIG, Citigroup, Bank of America, General Motors, and Chrysler. The Obama administration has pumped another $30 billion into AIG and $5 billion into automakers, bringing the total for what it termed "exceptional assistance" to $152.4 billion.