Treasury Secretary Timothy Geithner rejected calls Monday to cap executive compensation for bankers whose institutions got Troubled Asset Relief Program (TARP) funds, instead saying the government should focus on curbing incentives for high-risk activity.

"I don't think our government should set caps on compensation," Geithner said during a National Press Club event. "What I think we need to do is make sure we put in place some broad constraints on the incentive[s] compensation systems create. You had a crisis magnified by the fact that people were paid to take a huge amount of short-term risk, and that's something that's preventable."

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