Skip to main content

Presented Without Comment: Sorry, Arnie

  • Author:
  • Updated:

Treasury Secretary Timothy Geithner said the U.S.'s $700 billion financial rescue package can't be used to aid Lehman Brotherscities and states facing budget crises.
The law "does not appear to us to provide a viable way of responding to the issues that Lehman Brothers facesthat challenge," Geithner told a House Appropriations subcommittee in Washington today. Among the hurdles: Money from the Troubled Asset Relief Program is reserved for financial companies, he said.
The Treasury chief said he will work with Congress to help investment banksstates such as California that have been battered by the credit crunch and are struggling to arrange backing for municipal bonds and short-term debt.

Geithner Says TARP Can't Help U.S. States Solve Budget Crises [Bloomberg]