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Banks Raised $56B Since Tests: Geithner

Stress assessments boost confidence, have helped markets heal

By Ambreen Ali,  Newser User

Posted May 20, 2009 2:16 PM CDT

(Newser) – Government stress tests boosted confidence in the nation’s biggest banks and helped them raise $56 billion in needed capital, Treasury Secretary Tim Geithner told Congress today. His remarks were met by bipartisan skepticism, with members noting that smaller institutions still face severe challenges, the Wall Street Journal reports. “People don’t feel it getting better yet,” Geithner conceded.

But Geithner defended the Troubled Asset Relief Program, which has about $124 billion left, saying the market is starting to heal. He announced plans for an expanded survey of all banks that received TARP funds, saying the previous assessment helped “increase confidence in the financial system.” The Treasury is also launching small-business loan and toxic-assets programs in the coming weeks.


Treasury Secretary Timothy Geithner testifies on Capitol Hill today before the Senate Banking Committee.
Treasury Secretary Timothy Geithner testifies on Capitol Hill today before the Senate Banking Committee.   (AP Photo)
Treasury Secretary Timothy Geithner checks his watch as he testifies on Capitol Hill in Washington.
Treasury Secretary Timothy Geithner checks his watch as he testifies on Capitol Hill in Washington.   (AP Photo/Manuel Balce Ceneta)
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Lending is still severely depressed and questions remain about the financial health of many of our banks.
- Richard Shelby, Ala. senator

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COMMENTS
Showing 3 of 3 comments
Robert_Dada
May 20, 2009 11:30 AM CDT
As for banking, the govt has long been in that business and rightfully so. It's one of the purposes of the FDIC: to take over failing institutions and either restructure them so they can once again thrive as independent entities or break them apart and sell them to other viable institutions. The FDIC has been doing this for years.
justme
May 20, 2009 10:03 AM CDT
When do we get our money back and when does Washington get out of the banking/insurance/automobile/etc business?
fancygapva
May 20, 2009 9:53 AM CDT
$56B doesn't stack up impressively against the $700B TARP.

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