President Barack Obama's top economic adviser would not rule out on Sunday that more money may be needed to stabilize the U.S. financial system as a deep recession increases banks' losses, according to Reuters. Lawrence Summers, head of the National Economic Council, also said there was no question that tax cuts passed under former President George W. Bush needed to be repealed, though he would not be pinned down on exactly when. "We can make important progress and get started with the support that has been provided," Summers said on NBC's "Meet the Press" when asked whether taxpayers should expect another request for funding to shore up the financial system. "What ultimately will be necessary is something that will play out over time." House of Representatives Speaker Nancy Pelosi said earlier that "some increased investment" may be needed beyond the $700 billion approved last fall. The bailout fund was first pitched as a way to get bad assets off the banks' books in the hope that doing so would help restore normal lending and get the economy going. Instead, most of the money has gone to buy stakes in banks, and both Democrats and Republicans have complained that the cash was doled out with too few strings attached and insufficient oversight. Vice President Joseph Biden said on CBS' "Face the Nation" that Obama's Treasury secretary pick, Timothy Geithner, would advise the president on whether more money was needed. Geithner is expected to be confirmed by the Senate on Monday despite controversy over his failure to pay certain taxes.
