Geithner in new round of economic revival talks

WASHINGTON Mon Feb 2, 2009 3:31pm GMT

President Barack Obama (R) meets with Treasury Secretary Timothy Geithner in the Oval Office at the White House in Washington, January 29, 2009. Geithner will meet again on Monday with top regulators and also with the chairman of the House of Representatives Financial Services Committee to discuss how to move ahead with an economic recovery plan. REUTERS/Jim Young

President Barack Obama (R) meets with Treasury Secretary Timothy Geithner in the Oval Office at the White House in Washington, January 29, 2009. Geithner will meet again on Monday with top regulators and also with the chairman of the House of Representatives Financial Services Committee to discuss how to move ahead with an economic recovery plan.

Credit: Reuters/Jim Young

WASHINGTON (Reuters) - Treasury Secretary Timothy Geithner will meet again on Monday with top regulators and also with the chairman of the House of Representatives Financial Services Committee to discuss how to move ahead with an economic recovery plan.

The Treasury department said Geithner will meet Federal Reserve Chairman Ben Bernanke, Federal Deposit Insurance Corp. Chairman Sheila Bair and Comptroller of the Currency John Dugan to continue talks on financial and regulatory reform.

Treasury said the meeting with Bernanke, Bair and Dugan was to "continue ongoing discussions about financial and regulatory reform."

The Obama administration is trying to come up with a plan for stabilizing the banking system at the same time that it is attempting to persuade Congress to approve a nearly $900-billion stimulus plan through Congress by mid-February.

It is unclear when an announcement may come on the proposals for recapitalizing banks and reforming the existing Troubled Asset Relief Program, but administration officials have indicated some announcements are possible as early as this week on measures for restraining corporate pay at banks that are getting taxpayer-financed help.

Geithner is scheduled to have lunch on Monday with Secretary of State Hillary Clinton, whose department also has a significant role in international economic policy, for talks on the global economy.

Later in the day, Treasury said Geithner will meet House Financial Services Committee Chairman Barney Frank "to discuss plans for reviving our financial system and mitigating mortgage foreclosures."

In the latest sign of deep economic distress, the Commerce department reported on Monday that U.S. consumers cut spending for a sixth month in a row during December and their incomes shrank, leaving little reason to expect that consumer confidence will revive anytime soon.

(Reporting by Glenn Somerville; Editing by Theodore d'Afflisio)

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