The Obama administration will use bailout money repaid by large banks to provide additional capital infusions to community banks, Treasury Secretary Timothy Geithner said Wednesday. In remarks to an association of community bankers, Geithner also said the administration is moving forward with plans to streamline financial rules as part of a broader overhaul to be unveiled in the next several weeks. Banks with less than $500 million in assets will have six months to apply for the funds, Geithner said. They also will be able to apply for larger amounts than banks were allowed to request during the current round of investments. The Treasury Department has said it expects banks to repay $25 billion in government funds over the next year. Banks such as Goldman Sachs Group Inc. and JPMorgan Chase & Co. have said they want to pay back the money they've received from $700 billion Troubled Asset Relief Program, or TARP, as soon as possible. AP
