Posted at: 11/01/2009 8:05 AM
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Geithner says banking system now ’more stable’
(AP) WASHINGTON - Treasury Secretary Timothy Geithner (GYT’-nur) says the U.S. banking system is "dramatically more stable" because of the government bailout.
Geithner tells NBC’s "Meet the Press" that just one year ago, economic activity came to a standstill as major financial institutions shut down due to lack of liquidity.
Even though 115 banks have failed so far this year, Geithner says there has been a "dramatic improvement in confidence," with private capital back in the system.
He says one danger now is that bankers will be too conservative and not take enough risk to get adequate capital flowing, especially to small businesses.
He says the Obama administration is working to help open up credit to them.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
