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Govt. will move quickly on new financial rules, Geithner says

By Brady Dennis
NEW YORK -- Treasury Secretary Timothy F. Geithner said on Monday that the government would move "as quickly as possible" to put new regulations in place but would not "simply layer new rules on top of old, outdated ones."

Geithner said that the administration's push to overhaul the financial regulatory system was "an obligation, never a choice." At the same time, he said, "the reforms that are now the law of the land will help us rebuild a pro-growth, pro-investment financial system."

Geithner, who made the remarks during a speech at New York University, also urged executives to be proactive in improving their business practices.

"For the financial industry, your core challenge is to restore the trust and confidence of the American people and your customers and investors around the world," he said. "Don't wait for Washington to draft every rule before you start changing how you do business. ... Find new ways to improve disclosure for your consumers.

"End hidden fees. Don't push people into loans they can't afford. Demonstrate to your business customers -- small and large -- that, after running for cover during the peak of the crisis, you are ready and willing to take a chance on them again," Geithner said. "Change how you pay your executives so you are not rewarding them for taking risks that could threaten the stability of the financial system."

Geithner also met earlier Monday with New York Mayor Michael Bloomberg.

By Brady Dennis  |  August 2, 2010; 4:34 PM ET
Categories:  Budget and fiscal policy , Financial regulation , U.S. Economy  
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Next: Economic agenda: Tuesday, Aug. 3, 2010


The proof of the pudding is in the eating. We shall see how effectively new! improved! government oversight of the financial services industry reins in highly remunerative (for executives) and destructive (of the economy) behavior. Of course, the GOP shouts JOB KILLER! from the rooftops whenever certain behavior options are foreclosed. You might think, given the hue and cry, that better regulation (in the public interest) and slightly higher taxation jointly are equivalent to seizure (by the government) of private property.

Posted by: BlueTwo1 | August 2, 2010 5:25 PM | Report abuse

No, it's not an obligation, for an Atheist it's a choice.

The "Wealth of Nations" is not worth a bucket of warm spit without Adam Smith's prior work "The Theory of Moral Sentiments".

Posted by: gannon_dick | August 2, 2010 5:51 PM | Report abuse

Do these new rules require tax cheating treasury Secretaries who hide under the skirts of "statute of limitations", to "do the right thing" and pay up?

Posted by: ashrink | August 2, 2010 5:52 PM | Report abuse

Hogwash. The government always moves 'as quickly as possible'. The rub is that 'as quickly as possible' is usually a snail's pace. Like my dad always said: "The only speeds the government has are 5 speeds of slow and 3 speeds of even slower."

Posted by: Anonymous | August 2, 2010 6:29 PM | Report abuse

Hey, Post, Mr. Geithner, front page news! Wealthy American's and American executives of multinational corporations are dumping their US citizenships at an all time record pace. US Embassies, around the world, have appointments booked up through next February, with thousands of these bloated ticks and their lawyers getting UK, German, Swiss, and other citizenships. They pay less taxes, even with the Bush tax cuts, in foreign countries and they get to free trade and job outsource the US into road kill while having a neat foreign hiddy hole in which to climb. Go read the article in todays Financial Times of London! So, it looks like the new "financial rules" require a bolt hole for weasels.

If we want to end this depression, we will dump free trade, bring back the use of tariffs to protect our jobs and factories, outlaw multinational corporations, and tax the living snot out of offshore investments. Sure, we will run a few of the bloated ticks out of this country entirely, but they will be replaced by new American owned businesses, employing Americans, making products for sale in America. A country that depends between 70 and 80 percent on domestic consumption, that has, as a total, of it's manufactured exports, 5.2%, is ill served by any sort of free trade, anyways. End it!

Posted by: Anonymous | August 2, 2010 6:38 PM | Report abuse

This bum along with Greenspan never saw a housing bubble, his coagent for Goldman Bernanke have made credit card banks make much coin by small business maxing them out to pay for material instead of a loan along with sticking it to personal credit card users (over 2 billion in late fees), while keeping high reserves for regionals that went under in record numbers without the credit card business. His AIG bailout to pay 100% on the dollar enriched Goldman as we as foreign banks entwined in business with them. Fannie/Freddie became the dumping grounds for Countrywides type subprime/sub A mortgages under water. TARP money was paid back at the expense of the working class not receiving prior credit. The Fed. is a private bank that prints 9 dollars for every dollar it puts up, lends the money out at interest then pays no taxes on that income. Sounds like a violation of the 14th Amendment to me, other banks pay taxes. I would rather see someone like Sheila Bair that did something for the little guy than the two-headed Goldman monster that is Bernanke/Geithner. They could have saved only the US banks 70 cents on the dollar, liquidated the rest of AIG's operation for far less than owning AIG. The GM bet is panning out and hopefully the Volt with gas powered generator giving it far greater range than anything on the market (40 miles on a charge) will sell. The only bank left with some balance sheet problem assets is Citibank, Chase was always strong and BoFA is coming back. I don't think the bill was strong enough in the Ma Bell type break up ability. Derivative investments should be monitored closely with Fed. participating banks getting audited on those transactions. I don't think Geithner has worked in the people's interest but for his connected friends, same for big Ben.

Posted by: jameschirico | August 2, 2010 6:55 PM | Report abuse

rules require tax

Posted by: Anonymous | August 2, 2010 7:34 PM | Report abuse

i trust the obama administration. You will see.

Posted by: Anonymous | August 2, 2010 7:35 PM | Report abuse

If you read between the lines of these hollow, meaningless buzzwords, what Geithner is REALLY saying is: "Pssst! I can only hold off the underclasses for so long! Wait at least 3 months before you start jacking up their interest rates and finding even more ways of nickel and diming them to death! Why do you think I appointed myself the head of the new consumer protection agency! Work with me here, people! I'll make it worth your while!"

Posted by: solsticebelle | August 2, 2010 10:48 PM | Report abuse

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