Geithner Leaves Open Option to Oust Bank CEOs
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In an interview with CBS News anchor Katie Couric, Treasury Secretary Timothy Geithner left open the possibility that the administration would pressure bank CEO's to resign after the unprecedented move to force out GM's (NYSE: GM) CEO Rick Wagoner.
Geithner said when the government has been required to provide "exceptional assistance", like in the case of AIG (NYSE: AIG), Freddie Mac (NYSE: FRE) and Fannie Mae (NYSE: FNM), they have made changes to management and the board to make sure they emerge stronger, which he said is the basic test.
When asked specifically if he would leave open the option to pressure a bank CEO to resign, Geithner said "of course."
Although the government has not defined "exceptional assistance", banks that have received this level of support could include Citigroup (NYSE: C) and maybe Bank of America (NYSE: BAC).
Video of Katie Couric's Interview with Timothy Geithner
Geithner said when the government has been required to provide "exceptional assistance", like in the case of AIG (NYSE: AIG), Freddie Mac (NYSE: FRE) and Fannie Mae (NYSE: FNM), they have made changes to management and the board to make sure they emerge stronger, which he said is the basic test.
When asked specifically if he would leave open the option to pressure a bank CEO to resign, Geithner said "of course."
Although the government has not defined "exceptional assistance", banks that have received this level of support could include Citigroup (NYSE: C) and maybe Bank of America (NYSE: BAC).
Video of Katie Couric's Interview with Timothy Geithner
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