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Geithner Defends Bailout to Dems, Doesn't Ask For New Money

Treasury Secretary Tim Geithner paid a visit to House Democrats last night for a wide-ranging talk that didn't include any requests for more financial bailout money, but did come with a plea for patience as the Obama administration attempts to stabilize the economy.

"We're doing more in weeks than other countries do in years," Geithner told Democrats, according to Rep. Elijah Cummings (D-MD). In a post-meeting interview with ABC, Cummings was addressed the critics that have been decidedly unenthused* with Geithner's performance thus far:

Cummings said Geithner's ill-fated unveiling of the administration's financial stability plan on Feb. 10 created doubts in the minds of critics.

"One of the worst things he did was that initial speech, because it set a pattern that maybe something's missing here in the minds of some people," said the Maryland lawmaker. "It's about trust."

"One of the biggest mistakes he made was coming out initially with that speech. He was seen as the golden boy ... and then for him to come out, with everyone on the edge of their seats waiting for a specific plan and all we got were some 'rah rahs' and 'go team' -- that didn't sit too well."

Despite the criticism directed at the treasury secretary, Cummings expressed confidence that Geithner is the right man for the job.

"I think he can do the job," Cummings said. "I think the guy is very competent."

"If Geithner were to go, it would hurt," Cummings cautioned. "A lot of this is [about] confidence."

Are more Democrats struggling with buyers' remorse over Geithner, who had to battle to win confirmation amid a tax payment scandal? We'll be following this story closely over the coming days.

Late Update: Cummings' candid remarks were a reference to outside skepticism of Geithner, not any doubts the congressman may hold about the Treasury chief. Cummings is "one million percent behind Tim Geithner," his spokeswoman tells TPMDC. "He is as confident in [Geithner's] ability to do the job as he was on day one."


7 Comments

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Bottom line, what is the plan stan or tim? We all want to know. Why is it super double secret at this point?

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Why is it super double secret at this point?

The plan is to stress test banks, then decide who gets eaten and who doesn't. And maybe he doesn't go blabbing about the details because every jackass on Wall St. would do their best to game the system with that info.

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They have been "stress testing" for weeks. It really can't be that complicated. I agree on the gaming of the system. In order to address that problem, stop the trading of the financials when the plan is released. They are trading at a dollar anyway and the stocks are probably completely worthless in any event under any plan. The banks are insolvent, so their value is below zero.

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I think he would have been better to never give that speech - then at least people could have assumed he was still some super-genius working behind the scenes. What that speech told everybody is that Geithner didn't know what to do either. I think they can't release a plan, because given the meltdown, you can't plan, but have to react.

It's a combined triage and emergency surgery at the moment, and there isn't long term planning in either case.

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I would submit that they aren't doing triage or emergency surgery. That would be taking over some banks and freeing up the credit market. Right now they are just basically giving a patient aspirin that needs open heart surgery.

I agree on the speech. If you have nothing to say, don't say anything. That was a mistake. Given that mistake though, they need some action, anything.

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"I agree on the speech. If you have nothing to say, don't say anything. That was a mistake. Given that mistake though, they need some action, anything." Michael A.

But Michael, he said more than his actual words revealed. He seemed to have said at least four things:

1. We don't have a clue what we need to do to fix the banking problem.

2. Whatever we do will comport with the desires of Wall Street's "Masters of the Universe."

3. We will not seek advice from people who have views counter to our or Wall Street's views.

4. The taxpayers will pick up the tab for this bail out of Wall Street and the mega-banks.

Note: Rep. Barney Frank would make a superb treasury secretary. I made this suggestion weeks ago, and I still hold to it.

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Good points and very distressing. By the way, that is a good suggestion on barney frank. He would make an excellent treasury secretary. I hadn't thought about him.

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