RTTNews - The goal of the Obama administration is to exit its involvement in private companies as soon as possible, White House National Economic Council Director Larry Summers said Friday.
Speaking at the Council on Foreign Relations in New York, Summers said that the interventions were necessary and called for a new approach to too big to fail.
Summers said that there is an unequivocal recognition that action is appropriate only when necessary to avert unacceptable or dire outcomes, and the actions taken were of necessity, not of choice.
President Barack Obama did not, as he has said many times, run for president to manage banks, insurance.or car companies, Summers said.
The focus of the administration is to make its interventions minimally intrusive, Summers said, and ensuring that the relationship is as temporary as possible.
He cited the move earlier this week of some top financial institutions to pay back the Treasury $68 billion as encouraging.
Only if government is no longer a major presence in these companies in short order will we have succeeded, Summers stressed.
He added that a different approach should be taken to the financial system, stating that it is not safe until it is safe for failure.
This includes creating resolution systems for banks, Summers said.
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