An article titled ‘Geithner won’t say if more bailout money needed’ says “U.S. Treasury Secretary Timothy Geithner said Sunday the government will have about $135 billion left (of the $700 billion approved last October) after banks give back some bailout money and declined to say whether he will ask Congress for more”, and the “Treasury expects the banks this year to return about $25 billion of money that they received from the government, because they were able to replace it with private capital or decided that they do not want money with strings attached”. However, Geithner is reported as having said the banks still need help and that “A core part of our plan involves making sure banks have enough capital to provide the lending we’re going to need to get recovery back on track”.

I love this: the article says that “A few banks, unhappy at limits on executive pay and other government scrutiny that has accompanied the bailout money, have said they intend to return the money to the Treasury”. That these banks ask for and took the money in the first place, and now are reported to be returning the money for the reasons stated seem so absurd to me that I can’t believe it to be true.

On a separate note, the article says President Obama and Geithner are traveling to London to attend a one-day G-20 session on Thursday where a commitment for increased funding for the IMF is widely seen as likely to be agreed.

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