CNBC will be running a repeat of treasury secretary Timothy Geithner’s townhall meeting tonight at 10:00 p.m EST.
CNBC clips here; writeup here. An excerpt:
WASHINGTON (MarketWatch) — Treasury Secretary Timothy Geithner late Thursday responded to criticism of the Obama administration’s bank bailout endeavors, addressing public frustration about billions in taxpayer dollars going to bankers.
“I wouldn’t give a penny to a banker, to benefit a banker,” Geithner said at a town hall meeting hosted by CNBC at the Newseum in Washington. “But if you let the system get to the point where people are taking their money out of banks, where people can’t get credit, where things stop, then you will see companies fail, unemployment rise, pension values fall by 30%, people having to work a decade longer than expected because of that damage.”
The town-hall meeting followed Geithner’s announcement earlier Thursday of a series of proposals to phase out some bank-rescue initiatives and programs.
Treasury has taken back its “place holder” request for $750 billion in additional rescue funds, which it made as part of President Obama’s February 2010 congressional budget request. He said the money is unlikely to be necessary. See full story on winding down of financial rescue programs.
At the town hall, Geithner fielded questions from audience, some of whom expressed concern about bank executive and employee compensation, automotive bailouts and worries that China may stop buying Treasurys in response to rising U.S. deficits created, in part, by the financial rescue plan.
Geithner said the Treasury’s plan for compensation reform, which he hopes will be enacted on Capitol Hill, seeks to create long-term incentives for bankers.
“You want compensation to come substantially in the form of equity in the firm that vests over time, that is at risk, that can be clawed back if returns don’t materialize. And you’re seeing some initial signs of change in that direction, and I think those are welcome and encouraging. But again it’s not really something you can leave to the market.”