WASHINGTON -- The Obama administration must tread carefully while redirecting a $700-billion bank bailout fund to support struggling housing and small business sectors because the financial system is still fragile, a senior Treasury official said on Thursday.
"Key parts of the financial system remain impaired and the system as a whole is still somewhat fragile," Herb Allison, assistant Treasury secretary for financial stability, told a Congressional Oversight Panel.
"We must continue to be ready to provide support if needed, and we must unwind these programs carefully, so that the nascent recovery is not disrupted," he told the panel that monitors Treasury's handling of the Troubled Asset Relief Program, or TARP.
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