Monday, June 15, 2009
The Obama administration is rolling out new regulations this week intended to tighten oversight of financial institutions.
Treasury Secretary Timothy Geithner says the aim is to get rid of what he calls "gaps" in the financial regulations that contributed to the current meltdown. Speaking in New York, Geithner said the current system has been too unstable and fragile, and lacks sufficient protections for consumers and investors.
Geithner declined to give specifics on the regulatory reform plan or say whether it will include eliminating certain agencies. But administration officials say the Federal Reserve will be given increased power to oversee large institutions whose failure could threaten the stability of the financial system. Critics call the current system inefficient, and favor the consolidation of all banking regulation into one agency.
President Barack Obama is expected to unveil proposed changes on Wednesday, a day before Geithner is scheduled to testify about them on Capitol Hill.