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Showing posts from April 23, 2009

Bailout fatigue starting to show

Business Times - 24 Apr 2009


Bailout fatigue starting to show

Congress and citizens alike are becoming dissatisfied with Washington's piecemeal rescues of big financial institutions

By LEON HADAR
WASHINGTON CORRESPONDENT

DURING his much anticipated testimony on Capitol Hill this week, US Treasury Secretary Timothy Geithner indicated that most of America's banks had sufficient reserves on hand to cover possible future losses. And he defended the federal government's US$700 billion bank rescue plan, insisting that the federal bailout fund still had enough money to cover future capital demands of troubled banks.

Mr Geithner's testimony came as Congress was studying the Obama administration's proposal to provide regulators with power to seize financial institutions in future when their collapse could potentially devastate the entire financial system.

At the same time, Americans regulators were preparing to release the results of the 'stress tests' that will det…