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Obama: More money may be needed for financial fix

Published 02/24/2009, 09:25 PM
Updated 02/24/2009, 09:32 PM

WASHINGTON, Feb 24 (Reuters) - President Barack Obama said on Tuesday that more money may be required to repair debt-laden U.S. banks and revive the economy.

"This plan will require significant resources from the federal government -- and yes, probably more than we've already set aside," Obama said in his first major policy speech since taking office in January.

"But while the cost of action will be great, I can assure you that the cost of inaction will be far greater, for it could result in an economy that sputters along for not months or years, but perhaps a decade," he said.

Obama vowed to act with the "full force" of the federal government to ensure that banks have enough resources to keep lending even if the economy worsens, and said he would hold accountable the firms that receive government aid. (Reporting by Emily Kaiser, editing by Chris Wilson)

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