Geithner: don’t declare victory too soon in crisis

Treasury Secretary Timothy Geithner said on Thursday the government had to beware declaring victory too soon after managing to avert complete financial collapse by bailing out the nation's banks.

"History suggests that exiting too soon from policies designed to contain a financial crisis can significantly prolong an economic downturn," he said in prepared remarks for delivery to a Congressional panel that oversees the Troubled Asset Relief Program or TARP.

Geithner said investments made in banks through TARP were returning more money sooner than thought and the next few weeks will bring "substantial income" from more sales of warrants to buy stock in banks that are repaying bailout money.

But Geithner said he had requested that TARP be extended through next October 3 in order to be able to respond if necessary should financial conditions suddenly worsen.