Excerpt from: Forex News
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| March 24, 2009 | | Geithner wants the government to be able to seize companies like AIG | Timothy Geithner is scheduled to testify before Congress today, expanding on plans for the economy. One of the things he is likely to call for is expanded powers for the government when dealing with non-bank financial institutions.
Geithner's reasoning is that without the ability of the government to intervene and seize failing non-bank entities (notably AIG), the entire U.S. economy is at risk. The FDIC can already take over failing banks, ensuring that they do not cause turmoil. Geithner would like to see similar powers to seize large insurers and other non-bank financial institutions that are on the verge of failure.
It remains to be seen how the financial markets will view this particular suggestion of Geithner's. It comes on the heels of a vote of confidence from Wall Street with regard to the Treasury's latest bank rescue plan, and on supportive words from President Barack Obama on 60 Minutes.
| Topic Tags: AIG, Barack Obama, economy, failure, FDIC, financial institutions, non-bank entities, Timothy Geithner, U.S. economy | |
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