BUSINESS
02/21/2009 05:12 am ET | Updated May 25, 2011

Obama Administration Begins WIth No Quick Fix For Banks

WASHINGTON --Even before they have settled into their new jobs, President Obama's economic team faces an acute crisis in the nation's banking system that has no easy answers and that they are not yet prepared to address.

The president's advisers watched most banking shares fall sharply on Tuesday, reinforcing what Obama officials have known for weeks: that their most urgent financial problem is an immense new wave of losses at banks and other lending institutions that threatens to further cripple their ability to resume normal lending.

But when Timothy F. Geithner, the president's nominee to be the Treasury secretary, appears before the Senate Finance Committee on Wednesday for his confirmation hearing, he is not expected to have a detailed plan ready.

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