The cost of credit has started to ease,Mr.Geithner informed the U.S. Senate.Businesses are finding it easier to raise money in the capital markets.This is all welcome news,but I want to emphasize this is just the beginning.We still face a prolonged repair and adjustment.The combined effect of the programs will help.We're working very closely with the Small Business Administration.Refinancing of commercial real estate is a major challenge.The best thing we can do is 1.provide capital where it is necessary;and 2.have the Federal Reserve extend lending to Commercial Mortgage-Backed Securities,or CMBS.These are two very important steps to take.
About half the AIG risk has been taken down.To be fair,the management of this firm is finding it incredibly difficult to disentangle the businesses.Our options were substantially constrained by the complexities of this firm,Tim Geithner pointed out.Wearing a charcoal suit,white shirt and blue striped tie,the Treasury Secretary maintained his composure and seriousness through the intense exchanges with the demanding senators.
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