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Treasury Secretary Timothy Geithner marked the first anniversary of the Obama administration's financial stability plan on Wednesday, noting that the financial system is healing but is still damaged.
"It was one year ago today that the Obama Administration outlined a Financial Stability Plan to address the four problems at the heart of the financial crisis: frozen credit markets, weakened bank capital, a backlog of troubled mortgage assets on bank balance sheets, and falling home prices," Geithner said.
He added, "A year later, the actions we took, alongside the Recovery Act, have worked to restore economic growth and financial stability."
Geithner said the plan has been successful in that "access to credit is improving and the cost of borrowing for businesses, consumers, homeowners, and state and local governments have fallen sharply."
"In addition," he continued, "we have achieved this progress at much lower cost than anticipated."
Geithner said that the expected cost of stabilizing the financial system has fallen by more than $400 billion, and he expects "it will fall even further."
He added that if Congress joins President Barack Obama in adopting a Financial Crisis Responsibility Fee, "Americans will not have to pay one cent for TARP."
Still, despite arguing that the plan has been successful, Geithner did admit that the financial system is "still damaged, and we have a lot of repair work still ahead."
It was in February 2009 when Geithner first announced the Financial Stability Plan. At the time, Geithner said the plan would "help restart the flow of credit, clean up and strengthen our banks, and provide critical aid for homeowners and for small businesses."
Unfortunately, on the day Geithner announced the plan, it wound up dragging the Dow Jones down by 382 points, with traders wondering if the plan would actually work.
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