WASHINGTON — President Barack Obama's pick to oversee the $700 billion bank bailout program told Congress today more time is needed for the recovery plan to work.

Herbert Allison, who once led troubled mortgage buyer Fannie Mae, said the nation shouldn't be fooled that the economy is on the mend or that government aid is no longer needed because some banks have started repaying the money.

"I believe this is still a very serious economic time for this country, and much more has to be done to restore stability," Allison told the Senate Banking Committee.

"We have to see this program through and make sure it's well-administered all along the way," he later added.

If confirmed as assistant secretary for financial stability at the Treasury Department, Allison would be in charge of managing the largest bank bailout program in history. Congress established the Troubled Asset Relief Program, or TARP, last fall to inject capital into banks hit by the mortgage crisis.

TARP has become a lightening rod for criticism from some Republicans who say the money is government intervention at its worst. Treasury officials say it has been critical to staving off a market collapse.