During Congressional testimony Treasury Secretary Tim Geithner applauded the Senate’s passage of the tax cut extension bill for the middle class.Geithner says their action yesterday demonstrated that lawmakers are prepared to do the fiscally responsible and fair thing by allowing tax rates in the top two percent to expire.
The Treasury Secretary appeared before the Senate Banking Committee to outline the Financial Stability Oversight Council’s (FSOC) annual report and continued threats to the U.S. economy and financial system. This was Mr. Geithner’s second day testifying about the council’s findings and the LIBOR scandal.
Once again, he defended his actions and says he did all he could to address the LIBOR issues that were first raised back in 2008.
Sen. Tim Johnson chairs the Senate Banking Committee and Sen. Richard Shelby serves as the Ranking Member.
Secretary Geithner told members of the House Financial Services Committee Wednesday that U.S. banks have made improvements in their ability to withstand another financial crisis, but that European nations must move "aggressively" to contain their debt.
Among the FSOC report's recommendations are that banks and other financial institutions put into place plans to maintain their capital without government intervention, be prepared to respond to interest rate changes, and be more "disciplined" in assessing the credit worthiness of borrowers.
The FSOC includes not only the Treasury Secretary, but nine other top economic officials, including the Chairman of the Federal Reserve, and the heads of the SEC and the FDIC.