WHEN: Today, Thursday, September 10th at 7PM ET
WHERE: CNBC's "Banking on Geithner: A CNBC Town Hall Event with the Treasury Secretary"
Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE town hall with Treasury Secretary Tim Geithner.
CNBC's "Banking on Geithner: A CNBC Town Hall Event with the Treasury Secretary" premieres tonight, Thursday, September 10th at 7PM ET on CNBC.
ALL REFERENCES MUST BE SOURCED TO CNBC.
People tended to underestimate the severity, waited too long to act. For that fundamental reason that it is deeply offensive to go to your citizens and say, to save this thing and to prevent even worse outcome we have to go do these deeply offensive things of providing support for a financial institution, including institutions that helped create the crisis, it seems deeply unfair, it's fundamentally unfair.
GEITHNER ON WILL TO FIX:
People should be angry, people should be deeply angry and frustrated and that's why it's so important we find the will as a country to fix this, not just to get growth back.
GEITHNER ON ACTIONS:
Today, because of the effectiveness of the actions we've taken, it's just the beginning, we've had more than 80 billion dollars come back into the treasury. That money goes to reduce how much we have to borrow and it means that we have more resources available to do the necessary things our country needs.
GEITHNER ON EFFECTIVE SYSTEM:
You cannot have an effective financial system if banks get to choose who their regulators are. They get to shop for the weakest. You can't have a system that works if they get to choose how much capital they hold. If they get to decide where to hold risk, it doesn't work. We had a test of that, it didn't work out so well for the country.
GEITHNER ON DAMAGE:
I wouldn't give a penny to a banker, to benefit a banker. But if you let the system get to the point where people are taking their money out of banks, where people can't get credit, where things stop. Then you will see companies fail, unemployment rise, pension values fall by 30%, people having to work a decade longer than expected because of that damage. So it is the necessary, it is the fair thing to do.
GEITHNER ON TAXES:
Right now, if you're worried as most Americans should be about how we're going to afford these things in the future, how we're going to get back to a point we're living in our means, the most important thing now, we can do, is to get this economy back to where we're growing; where firms are investing again; people are creating jobs again. And when we do that, the world needs to understand, Americans need to understand that we're going to bring those deficits down. And that means we're going to have to bring our commitments and our resources closer into balance.
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