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How the recession tested the big banks

By Timothy Geithner | China Daily | Updated: 2009-05-08 07:51

Treasury, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Federal Reserve announced on Wednesday the results of an unprecedented review of the capital position of the nation's largest banks.

This is an important step forward in President Barack Obama's program to help repair the financial system, restore the flow of credit and put our nation on the path to economic recovery.

The president came into office facing a deep recession and a damaged financial system. Credits had dried up, forcing businesses to lay off workers and defer investment. Families were finding it difficult to borrow to finance a new house, buy a car or pay for college tuition. Without action to restore lending, we faced the prospect of a much deeper and longer recession.

How the recession tested the big banks

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