(Updates with comments from CBS interview on bank executives,
TARP; adds ABC interview comments on double standard)
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 come after President Barack Obama's administration
forced out General Motors Corp. (GM) Chief Executive Rick Wagoner,
sparking speculation 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 on ABC. "That basic standard and
basic objective is the same across everything we're doing to help
get recovery back on track."
He rejected the idea that there's a double standard for
supporting the auto industry versus financial institutions, despite
the amount of government aid to banks dwarfing that to the Big
Three auto makers.
Ahead of a meeting of the Group of 20 developed and developing
nations, Geithner said now is the "strongest moment of cooperation
globally...since the Second World War." He said other major
countries share the president's support for financial regulatory
reform measures as well.
In an interview for the "CBS Evening News" with Katie Couric,
Geither confirmed the U.S. will keep open the option to pressure a
bank CEO to resign.
Asked about complaints the Treasury hasn't made the Troubled
Asset Relief Program transparent and accountable, he said critics
should look at the efforts from the new government - not those
inherited from former President George W. Bush's administration -
to find a commitment to greater transparency, tracking and
oversight mechanisms. He said his department is working quickly to
acheive the strongest standards.
In a third 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 sites:
http://blogs.abcnews.com/theworldnewser/2009/04/geithner-global.html
http://www.cbsnews.com/sections/eveningnews/main3420.shtml
http://www.msnbc.msn.com/id/3032619/
-Dow Jones Newswires; 201-938-5500