Geithner: Scars of Financial Crisis Continue to Linger

BY Jason M. Breslow  July 6, 2010 at 5:25 PM EST

Treasury Secretary Timothy Geithner told Jim Lehrer in a newsmaker interview Tuesday that scars of the financial crisis are continuing to drag on the economy but said steps taken by the administration helped stabilize business conditions and home prices.

Geithner predicted that financial reform would pass the Senate and that the bill would offer better consumer protections for the public.

“I think it’s important to recognize that the scars of this crisis cut very, very deep,” Geithner said.

The Treasury secretary also defended the Obama administration’s policies on housing despite millions of foreclosures already taking place or expected to happen.

Speaking about Europe’s debt problem, Geithner said he believed the countries could manage their problems and were taking the right steps.

Watch the full interview on Tuesday’s NewsHour or read the full transcript here.