Obama officials cautious on California bailout request

WASHINGTON ¿ - Obama administration officials expressed concerns Thursday about California's request for federal intervention in its budget crisis as the state's congressional delegation split on the issue.

California has asked the administration to provide guarantees for billions of dollars in emergency loans, saying the state will soon run out of cash without federal help.

But Treasury Secretary Timothy Geithner expressed doubt Thursday that he had the authority, without new legislation, to help the state under the program Congress set up to rescue financial institutions.

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