Very average performance from Couric. Geithner needs to be interviewed with a heavy hand to get him to answer anything honestly and directly. Video and transcript are inside.
Watch (video is below)
Timothy Geithner: A year ago, people for the first time in a century in this country were wondering about whether they should keep their money in banks.
But today, you have a lot of private capital came into the financial system. The system is stronger because of that. Borrowing costs have coming down for corporations and for families. Those are the initial signs of improvement. And that's why -- why the economy is starting to grow again.
Katie Couric: Having said that, it's been a year since Lehman collapsed. And yet, Congress has passed only one major piece of financial regulation having to do with credit cards. Derivatives still largely unregulated. Huge bonuses are back. So what has really changed?
Geithner: Katie, we're gonna change this financial system fundamentally. We have to. 'Cause we can't afford to let this country be in a position again where you can suffer this much damage. And that's gonna require a comprehensive reform. But it requires legislation.
Couric: This kind of headline must give you indigestion. It says "Progress is slow on regulatory overhaul, posing risk of even bigger crisis."
Geithner: Again, I, actually I think Congress is gonna move this year. I think they're gonna move earlier than any country in response to past crisis has thought about reform.
Couric: Let me ask you about bonuses because some firms cutting back - on them are actually raising salaries. As you know, five of the biggest banks set aside $60 billion to cover compensation. That's just $17 billion less than 2007. And with layoffs that's a lot of fewer people getting that money. So doesn't this amount to business as usual in many ways?
Geithner: But it, we can't let business as usual, we can't let things go back to where they were.
Couric: But isn't this a shell game? They're just putting more money for salaries, and less for bonuses-and people are still getting mega payments?
Geithner: --If that?s what happens, then we would have failed.
Couric: Someone is going to have to pay down the mountain of debt created by this financial crisis. Do you believe Mr. Secretary-- an across the board tax increase is inevitable?
Geithner: And I think people recognize that these deficits are unsustainable. And if we're gonna have a stronger economy in the future we have to bring them down.
Couric: Is an across the board tax increase inevitable?
Geithner: I don't-- I don't think so, no.
Couric: As you know economic growth is powered by consumer spending. In a recent Gallup Poll found that 70 percent of Americans are cutting expenses. So what out there-- Secretary Geithner - might light a fire under the economy and create sustainable growth?
Geithner: It's gonna come gradually. But the first step is to pull the economy back from the abyss.
Couric: And do you really feel that you have done everything in your power to put systems in place as quickly as possible--possible to prevent a financial crisis of this magnitude from ever happening again?
Geithner: Not absolutely. N-- not yet. But as I said that requires Congress legislating reforms.