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Geithner calls for TARP reform-Bloomberg

Published 01/21/2009, 12:25 AM
Updated 01/21/2009, 12:32 AM

Jan 21 (Reuters) - U.S. Treasury Secretary-nominee Timothy Geithner requested Congress to pass a robust stimulus plan to revive the economy and pledged to "reform" the government's $700 billion bailout program, Bloomberg said, citing prepared testimony for a Senate Finance Committee hearing.

"The ultimate costs of this crisis will be greater if we do not act with sufficient strength now," Geithner was quoted by the agency as saying in the testimony for the hearing scheduled for Wednesday in Washington. "In a crisis of this magnitude, the most prudent course is the most forceful course."

Geithner also said in his opening statement that, if confirmed, he would refocus the Troubled Asset Relief Program (TARP) to help small businesses and families that are losing their homes and jobs, according to the agency, which obtained a copy of his testimony.

Geithner also called for "comprehensive" regulatory changes to help ensure that an economic crisis of this magnitude does not happen again, the agency said.

"We need to move quickly to build a stronger, more resilient system now, with much greater protections for consumers and investors, with much stronger tools to prevent and respond to future crises," he was cited as saying.

A spokeswoman for the Obama administration declined to comment on the report. (Reporting by Ajay Kamalakaran in Bangalore)

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