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Up to regulators to decide bank health: Treasury

WASHINGTON
Tue Apr 14, 2009 9:43pm EDT

WASHINGTON (Reuters) - U.S. banking regulators, and not the Treasury Department, are responsible for determining which banks are strong enough to return government bailout funds, a senior Treasury official said on Tuesday.

Crisis in Credit

"It is not for us (at Treasury) to opine on safety and soundness," said the official, who declined to be named.

The official added that it is unlikely the regulators will make any judgments about any of the 19 banks that are in the midst of so-called "stress tests" until those tests are complete.

Goldman Sachs said on Tuesday it has a "duty" to repay the government money it was given in October. The official, however, declined to comment specifically on Goldman Sachs.



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