WASHINGTON — The Treasury intends to use bank repayments of government aid to continue assisting the financial sector, Treasury Secretary Timothy Geithner told lawmakers Thursday even as he assured them that the $700 billion rescue fund would not become a permanent financial bailout tool.
"We’re still in a very challenging economic and financial situation,” Geithner said.
Republican lawmakers have argued that Geithner should use the repayments toward reducing the federal debt.
Deadline exists
Geithner reminded members of a House Appropriations subcommittee Thursday that the rescue fund law, as adopted by Congress last fall, automatically ends on Dec. 31. The law gives the Treasury secretary the authority to extend it only nine more months.
"So it is not a permanent program,” he said.
The hearing before the Appropriations subcommittee was intended to give Geithner an opportunity to discuss the Treasury’s 2010 budget request. But lawmakers’ questions focused largely on his work dealing with the financial crisis, including what role the government could play in assisting money-strapped states such as California.
Local help
Geithner said he did not have authority to use the financial rescue funds to help state and municipal governments.
But he said he was working with Congress to make it easier for state and municipal governments to borrow money.
"The primary burden is going to rely on governors and mayors to try to make sure that they’re taking the steps necessary to bring their deficits down,” he added.
Geithner declined to rule out helping California or other states with taxpayer money.
by the associated press
"We’re still in a very challenging economic and financial situation,” Geithner said.
Republican lawmakers have argued that Geithner should use the repayments toward reducing the federal debt.
Deadline exists
Geithner reminded members of a House Appropriations subcommittee Thursday that the rescue fund law, as adopted by Congress last fall, automatically ends on Dec. 31. The law gives the Treasury secretary the authority to extend it only nine more months.
"So it is not a permanent program,” he said.
The hearing before the Appropriations subcommittee was intended to give Geithner an opportunity to discuss the Treasury’s 2010 budget request. But lawmakers’ questions focused largely on his work dealing with the financial crisis, including what role the government could play in assisting money-strapped states such as California.
Local help
Geithner said he did not have authority to use the financial rescue funds to help state and municipal governments.
But he said he was working with Congress to make it easier for state and municipal governments to borrow money.
"The primary burden is going to rely on governors and mayors to try to make sure that they’re taking the steps necessary to bring their deficits down,” he added.
Geithner declined to rule out helping California or other states with taxpayer money.
by the associated press
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