Revival in US economy to take time: Wilbur Ross

Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other FIIs are saying about the markets See what other experts are saying about markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

Wilbur Ross, Chairman and CEO, WL Ross & Co, said the US government's stimulus programmes have prevented the economy from going off the cliff. But was quick to add that the revival in the US economy will take time.

He feels a V-shape recovery in the near-term is unlikely.

According to Ross, the US government needs to support banks. He said he would ask them to divest some toxic assets. "The Treasury's plan to move USD 1 trillion to public-private investment program (PPIP) is a step in the right direction."

Also see: Mkt lows behind but West needs more stimuli: Morgan Stanley

Here is a verbatim transcript of the interview with Wilbur Ross on CNBC TV-18. Also see the accompanying video.

Q: To start with stress test: what do you expect to hear on Thursday?
A: Many of these banks as we all hear in a couple of days are going to be a little short of cap under a stressful environment. My guess is that the government will make it clear that it will stand behind them but will want them to divest some toxic assets because otherwise they are playing with the government's money. Heads they win at the bank and in case tails they lose it comes out of the government. I would be very surprised of the government would tolerate that and let people keep getting more TARP (Troubled Assets Relief Program) but not do anything to rid themselves of their bad positions.