The government many not have to open its purse to banks that have been shown to need more capital in the latest round of stress tests, Joint Economic Committee (JEC) Chairwoman Carolyn MaloneyCarolyn Bosher MaloneyGun control group rolls out House endorsements Overnight Defense: Pentagon watchdog sidelined by Trump resigns | Plan would reportedly bring troops in Afghanistan back by Election Day | Third service member dies from COVID-19 Business groups throw support behind House Democrat's bill to provide pandemic risk insurance MORE (D-N.Y.) said Tuesday.

Maloney asserted that increasingly positive indicators on the economy and increased consumer confidence may lure private investors into recapitalizing banks with bad assets.

"I hope they'll be able to raise it from the free enterprise system and from private sources; that's always the preferred course," Maloney said this morning during an interview on CNBC.

Still, the JEC head said that the government would be prepared to pour money into troubled institutions -- if nothing else than to show that the U.S. is still willing to backstop undercapitalized institutions."

"We have additional TARP money available, and the government will step in" if private investors remain skittish, Maloney said. "And knowing that the government will be there in the crisis, I believe, has helped build confidence in the public during this economic downturn."

Watch a video of the interview here: