HIGHLIGHTS: Geithner, Summers to head economic team

WASHINGTON (Reuters) - President-elect Barack Obama on Monday named New York Federal Reserve Bank President Timothy Geithner to be the next Treasury secretary.

He also named former Treasury Secretary Lawrence Summers to head the White House National Economic Council and Christina Romer, a professor at the University of California, Berkeley, to head his Council of Economic Advisers.

Following are highlights from a news conference Obama held where he made the announcements.

OBAMA ON KEEPING CREDIT FLOWING

"I spoke with President Bush today. I spoke with (Fed) Chairman Bernanke today ... We have to do whatever is required to keep the financial system working and capital flowing. That's not important just for the banks, its important for our entire economy."

"My commitment is to do what's required so that our financial system works and credit flows. President Bush has indicated that he has the same approach, the same attitude. A lot of authority has already been provided to the administration, to (Treasury) Secretary Paulson. Chairman Bernanke has authority as well, and we need to make sure that that authority is used forcefully in the coming weeks to stabilize the current situation."

"I will make further assessments about whether it is necessary to draw down additional TARP money as the administration and as the Treasury Secretary Paulson and (Fed Chairman) Bernanke provide me with more real time information."

"We are united in making sure that the financial system works and operates the way it needs to."

OBAMA ON AID FOR THE U.S. AUTO INDUSTRY

"The auto industry historically has been backbone of manufacturing base.

"We can't allow the auto industry simply to vanish. We've got to make sure that it is there and that the workers and suppliers and business that rely on auto industry stay in business. What I also have said is that we cannot just write a blank check to the auto industry. Taxpayers can't be expected to pony up more money for an auto industry that has been resistant to change. I was surprised that they did not have a better thought out proposal when they arrived in Congress. I think Congress did the right thing, which is to say that 'you guys need to come up with a plan and come back before you're getting any taxpayer money.' And my attitude is that we should help the auto industry but what we should expect is that any additional money we put into the auto industry, any help that we provide, is designed to assure a long term sustainable auto industry and not just kicking the can down the road."

"The auto industry needs to present us with some clarity in terms of the dollar figures they're talking about."

OBAMA ON TAX CUTS

"The Bush tax cuts were disproportionately targeted to the very wealthiest Americans ... It is important if we're going to help pay for some of these expenditures that are absolutely necessary to get our economy back on track that those who are able to pay a little bit more do so."

"Whether that is done through repeal or whether that is done because the Bush tax cuts are not renewed is something that my economic team will be providing me with a recommendation on."

OBAMA ON STIMULUS

"We need a big stimulus package that will jolt the economy back into shape and that is focused on the 2.5 million jobs that I intend to create during the first part of my administration. We have to put people back to work. That runs in parallel with making sure that our financial system is stable, and so we're going to have to do more than one thing at a time."

"I want to see it enacted right a way ... it is going to be of a size and scope that is necessary to get this economy back on track."

OBAMA ON NEED FOR EXTRAORDINARY ACTIONS

"Right now, our economy is trapped in a vicious cycle: the turmoil on Wall Street means a new round of belt-tightening for families and businesses on Main Street -- and as folks produce less and consume less, that just deepens the problems in our financial markets. These extraordinary stresses on our financial system require extraordinary policy responses. And my administration will honor the public commitments made by the current administration to address this crisis."

OBAMA ON CRISIS RESPONSE

"We are facing an economic crisis of historic proportions. Our financial markets are under stress... While we can't underestimate the challenges we face, we also can't underestimate our capacity to overcome them -- to summon that spirit of determination and optimism that has always defined us, and move forward in a new direction to create new jobs, reform our financial system, and fuel long-term economic growth."

OBAMA ON CHARACTERISTICS OF ECONOMIC TEAM

"We'll need to bring together the best minds in America to guide us -- and that is what I've sought to do in assembling my economic team. I've sought leaders who could offer both sound judgment and fresh thinking, both a depth of experience and a wealth of bold new ideas -- and most of all, who share my fundamental belief that we cannot have a thriving Wall Street while Main Street suffers; that in this country, we rise and fall as one nation, as one people."

OBAMA ON QUALITIES GEITHNER WOULD BRING TO TREASURY

"Having served in senior roles at Treasury, the IMF and the New York Fed, Tim Geithner offers not just extensive experience shaping economic policy and managing financial markets -- but an unparalleled understanding of our current economic crisis, in all of its depth, complexity and urgency. Tim will waste no time getting up to speed. He will start his first day on the job with a unique insight into the failures of today's markets -- and a clear vision of the steps we must take to revive them."

"The reality is that the economic crisis we face is no longer just an American crisis, it is a global crisis -- and we will need to reach out to countries around the world to craft a global response. Tim's extensive international experience makes him uniquely suited for this work."