Geithner says forceful action necessary

"A failure to act with force and speed would be much more costly to the families and businesses across the country," he said in testimony before the Senate Budget Committee.

Geithner faced lawmakers for a second day after unveiling on Tuesday the Obama administration's plan for continuing the rescue of the ailing U.S. financial services industry, devastated by losses from the housing market collapse.

The plan will put $2 trillion to work mopping up bad assets and restoring credit but was immediately criticized for lacking detail and clarity.

Geithner said the problems of the crisis will take a long time to resolve and promised to consult closely with lawmakers as details of the plan are established, but said many of those fine points are still being worked out.

"This is the beginning of a process of consultation," he said.

"I completely understand the desire for details and commitments, but we're going to do this carefully, consult carefully so we don't put ourselves in the position again where we're laying out details ahead of the care and substance necessary to get it right," he said.

(Reporting by Mark Felsenthal; Editing by Jonathan Oatis)