With the country facing a worsening economic crisis, President Barack Obama is hoping to win quick approval of his choice of Timothy Geithner to be Treasury secretary, but first Geithner has to explain how he missed paying $34,000 in payroll taxes earlier in the decade.
The Senate Finance Committee was scheduled to hear from Geithner on Wednesday with his tax mistake expected to be among a number of questions that panel members will pursue.The hearing is being held against the backdrop of a worsening situation in the banking industry. Shares of major banks plunged on Tuesday as investors feared that an unraveling financial bailout will force the new administration to intervene more deeply into the nation’s banking system.
Many observers believe the Obama team will have to pump more money into banks or create an entity to take over their toxic assets.Such moves could dramatically increase government’s involvement in banks, potentially threatening shareholders whose holdings could be wiped out in the event of a takeover.
The Senate Finance Committee was scheduled to hear from Geithner on Wednesday with his tax mistake expected to be among a number of questions that panel members will pursue.The hearing is being held against the backdrop of a worsening situation in the banking industry. Shares of major banks plunged on Tuesday as investors feared that an unraveling financial bailout will force the new administration to intervene more deeply into the nation’s banking system.
Many observers believe the Obama team will have to pump more money into banks or create an entity to take over their toxic assets.Such moves could dramatically increase government’s involvement in banks, potentially threatening shareholders whose holdings could be wiped out in the event of a takeover.
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