(Updates with comments from NBC interview)
The U.S. government only ousts corporate executives if it's
essential to strengthening the company and the wider economy,
Treasury Secretary Timothy Geithner said in an interview with ABC
News' "World News with Charles Gibson."
His comments, to be aired Wednesday, come after President Barack
Obama's administration forced out General Motors Corp. (GM) Chief
Executive Rick Wagoner, sparking speculation that executives at
troubled financial institutions that took government funds could
face the same fate.
"Where we provide assistance to the financial system, we're
going to make sure it comes on conditions to make sure the system
emerges stronger," Geithner said. "That basic standard and basic
objective is the same across everything we're doing to help get
recovery back on track."
Referring to changes at companies like Fannie Mae (FMN) and
Freddie Mac (FRE), Geither said the government has made sure that
"the kind of changes in management or the board (are) necessary to
make sure these banks, these financial institutions, emerge
stronger," he said.
Ahead of a meeting of the Group of 20 developed and developing
nations, Geithner said now is "strongest moment of cooperation
globally...since the Second World War." He said the rest of the
world's major countries agree with Obama that, despite variation
among their needs and the measures taken to address them, everyone
must work together to stabilize the global economy. He said other
major countries share the president's support for financial
regulatory reform measures as well.
He said complaints the Treasury hasn't done enough to make the
Troubled Asset Relief Program transparent and accountable were
"unfair."
In another interview, set to air on NBC's "Nightly News with
Brian Williams," Geither said the U.S. bears "significant
responsibility" for causing the financial crisis. However, he said
he didn't sense any finger-pointing at the G20, noting instead a
common feeling of urgency.
He also said that though GM has made a fair amount of progress,
it still needs a lot of restructuring.
Web site:
http://blogs.abcnews.com/theworldnewser/2009/04/geithner-global.html
-Dow Jones Newswires; 201-938-5500