Geithner opposes creating a bailout fund

Treasury Secretary Timothy Geithner on Tuesday told a Senate panel that he opposes the creation of a bailout fund because it could prompt some firms to take extraordinary risk knowing that they would be saved by the government if those investments became toxic and lost value. 

"The disadvantage of doing that is it may create an impression, however designed, that there is a pool of money there that could help fund future bailouts and that, some people have argued, could add to moral hazard rather than reduce it," he said.