White House Notes 'Stake' In CIT Bankruptcy Proceeding

CIT, which filed for bankruptcy protection on Sunday, has received $2.3 billion in funds from the Troubled Asset Relief Program, or TARP.

In response to a question, Gibbs said the White House is "heartened" by the fact that CIT, which lends to small- and medium-sized firms, will continue to lend.

He added that the Obama administration plans to continue to take steps to protect the economy.

"We will continue to seek ways to stabilize the financial system," he said.

In response to another question, Gibbs said the best way for the Obama administration to deal with the budget deficit is to get the economy moving again. "That's what the economic team is focused on and that will have the most impact in the short term," he said.

-By Maya Jackson Randall, Dow Jones Newswires; 202-862-9255; maya.jackson- randall@dowjones.com

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