Bloomberg News

Geithner Says ‘Absolutely’ No Chance of Another Lehman in U.S.

October 06, 2011

Oct. 6 (Bloomberg) -- U.S. Treasury Secretary Timothy F. Geithner said today that there is “absolutely” no chance of another U.S. financial institution collapsing like Lehman Brothers Holdings Inc. in 2008.

Geithner, testifying before the Senate Banking Committee in Washington, was asked about Morgan Stanley but did not mention that company by name.

“The direct exposure of the U.S. financial system to the countries under the most pressure in Europe is very modest. Europe as a whole, though, is a big deal,” Geithner said. “Our firms, and this is true across the largest institutions in the United States, again are in a much stronger position if you look at their capital levels, levels of leverage, how they’re funded.”

To contact the editor responsible for this story: Kevin Costelloe at kcostelloe@bloomberg.net


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