Geithner: Bernanke Ouster Would Freak Out the Market

But Treasury Secretary isn't worried about reconfirmation
By Kevin Spak,  Newser Staff
Posted Jan 25, 2010 12:06 PM CST
US Federal Reserve Bank Chairman Ben Bernanke, left, and US Treasury Secretary Tim Geithner attend a G20 meeting in this file photo.   (AP Photo/Geoff Caddick, Pool)
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(Newser) – Timothy Geithner is behind Ben Bernanke, and thinks the markets are, too. When Politico asked how the markets would react if the Senate didn’t confirm the Fed chairman for a second term, Geithner replied, “I think the markets would view that as a very troubling thing to the economy,” before adding, “but I think they should be confident, because we are very confident he will be reconfirmed.”

Geithner said he was proud of his strategy to bring private capital into the banks, which he credited with getting the government out of the banking business quicker. He added that he doesn’t buy the banks’ warnings that proposed regulations to their limit size and risk-taking would be force them to lend less. “That's the argument you're always going to hear when you try to change things,” he said.

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