Geithner says no stress test banks insolvent

WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner said on Wednesday that none of the 19 banks being examined under stress tests are at risk of insolvency.

"None of those 19 banks are at risk for insolvency," Geithner said, according to a transcript of a television interview with the Charlie Rose Show for broadcast later on Wednesday.

A crisis sparked by reckless bets on the U.S. housing market has inflicted steep losses on the country's banks and the government is now stress-testing them to restore investor confidence in the health of the financial system.

Geithner said he believed the vast majority of the 19 banks tested will be able to raise sufficient capital from private sources over the next six months.

However, if they are unable to do so, the government may have to inject more taxpayer money to shore up the bank's capital cushions. Geithner said that if this pushed the public stake above 30 percent, the government may have to take a more active bank manager role.

"If we face those situations, we'll have to make judgments about whether the quality of leadership of those boards is strong enough so that, again, our interests are met best," he said.

Geithner also said the pace of U.S. economic decline was slowing, but the economy still faced enormous uncertainty.

"I think things feel better. I think your -- people sense a bit more stability. You can see it in behavior. People are spending a bit more," Geithner said, echoing the deliberately more confident tone taken by U.S. officials in recent days.

"They're the necessary steps for recovery to begin, but you know, this is going to take a while," he said.