Geithner halts investments in 2 gov't pensions

AP News
Posted: May 16, 2011 11:57 AM
Geithner halts investments in 2 gov't pensions

Treasury Secretary Timothy Geithner is telling Congress that he will halt investments in two big government pension plans Monday to allow the government to continue borrowing money for the next few months.

Geithner says the government will reach its $14.3 trillion borrowing limit on Monday. Republicans have held back supporting an increase in the borrowing limit, saying they want Congress first to approve more spending cuts.

Geithner has suspended pension payments in past congressional debates over raising the borrowing limit. The money that the two pension funds will lose will be replaced if Congress votes to raise the borrowing limit.

Geithner said the bookkeeping maneuvers and unexpected revenue will allow the government to delay an unprecedented default on the national debt until Aug. 2.