While the Obama administration “regrets” the action taken in recent weeks to stabilize the major financial institutions, not doing anything would have resulted in consequences much greater than the cost of stepping in, a Treasury official said yesterday. 

In testimony prepared for the House Committee on Oversight and Government Reform, interim assistant secretary Neel Kashkari — a holdover from the Bush administration who oversees the injection of government capital into troubled financial institutions — argued that all actions taken to date were needed in the face of “the potential imminent collapse of our financial system.”

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