Government Involvement Should Be Limited If Possible, Geithner Says

By: • Wed, Feb 11 2009, 10:34 AM

The U.S. government wishes to limit its involvement in the financial marketplace wherever possible, according to U.S. Treasury Secretary Timothy Geithner speaking before the Senate Budget Committee on the Troubled Asset Relief Program on Wednesday.

Aside from his comments on limiting government involvement, the Treasury Secretary's opening remarks before the body remained virtually identical to those delivered on Tuesday, when he promised to seek input from the Senate regarding his proposed private-public Financial Stability Trust plan.

His comments echoed his televised speech on Tuesday, outlining plans to increase transparency on how funds are spent; creating a "stress test" for major financial institutions participating in the program; the establishment of a so-called Private-Public Investment Fund that will lift the burden of toxic assets by insuring them; initiatives to boost consumer and business lending in cooperation with the Federal Reserve; and finally, a housing program designed to stem foreclosures.

"Finally, President Obama is committed to moving quickly to reform our entire system of financial regulation so that we never again face a crisis of this severity," he said.