President George W. Bush said on Monday that steps to set right the financial system has to be taken following the bailout of the troubled Citigroup Inc. He went on to say that the president elect Barack Obama will be kept informed of any action taken towards this.
Talking to reporters outside the Treasury Department, President Bush said the decision to bailout Citi was taken to safeguard the bank and if necessary such actions will be taken in future too to safeguard the financial system. This statement followed his meeting with Henry Paulson, the Treasury Secretary and a few other officials. President Bush also said Obama and his team will be kept well informed about any major decision taken by his government during the transition period.
He also said it is very important to reassure the people of America that they are working in full co operation with team Obama to bring them out of the financial crisis and Paulson will also be working in close relationship with the Obama team.
Citigroup was promised aid on Sunday to the tune of $326 billion as a part of its rescue. According to the HIS Global Insight chief economist Brian Bethune, the bailout of Citigroup opens up new possibilities of scaling up financial assistance in a systematic manner.
Obama picked some of the key members for his economic team on Monday roping in Tim Geithner, the president of the New York Federal Reserve as the secretary of Treasury. Lawrence Summers, the economist from Harvard will be running from the White House, the National Economic Council.
