Geithner was asked by Republican Sen. Jon Kyl of Arizona why President Obama's proposed bank fees would be imposed on many of the large banks that have already repaid the government's bailout investments.
Geithner said that the Treasury has the obligation to recover the bailout funds.
How do we do that? It's targeted to the ones who benefited most. It's a fee on risk and leverage, Geithner said. There's no perfect way.
Geithner was appearing before the U.S. Senate Finance Committee to give testimony about the President's fiscal year 2011 budget.
Kyl mentioned that some firms who received bailout funds have not yet repaid the funds. Kyl specifically mentioned General Motors, American International Group and Government Sponsored Enterprises, which includes mortgage finance companies Fannie Mae and Freddie Mac.
Shouldn't you try to get it back from those entities? Kyl asked.
Geithner said the Treasury would try to recover money from firms that have not yet repaid.