Geithner Seeks Global Action on New Regulations

[Joanne98]

Source: WSJ

Treasury Secretary Timothy Geithner on Saturday pushed his foreign counterparts to implement parts of the Obama administration's overhaul of financial-market supervision, arguing that a level playing field is necessary to ensure that the new safeguards aren't undermined.

Mr. Geithner called for tougher capital standards for globally active banks, powers in each country to wind down a faltering global financial company and more uniform transparency over complex products such as derivatives.

Treasury officials also want stronger supervision of large banks across major countries and better information-sharing arrangements so that U.S. and foreign officials can more closely supervise internationally active companies.

"Because risk does not respect borders, we will put forward several international proposals in our reform package that will help to raise standards globally," Mr. Geithner said during a meeting in Italy of finance ministers from the Group of Eight major industrial powers.

Mr. Geithner and other senior Obama administration officials have spent months crafting a plan to bolster supervision of financial markets and plan to present their recommendations on Wednesday.

The plan will seek to establish the Federal Reserve as the top regulator for institutions that could pose a systemic risk to the economy, as well as the creation of a council of regulators to monitor systemic risks. A central plank of the plan would give the government the ability to take over and break up large, systemically important institutions.


Read more: http://online.wsj.com/article/SB124491994020912633.html

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The fed is pulling a coop.

[sutz12]

1. That'll go over big...since we basically caused the problem

It was our deregulation that fueled this bonfire. Most of what caused this was illegal 20 years ago, and is still illegal in most other civilized countries.

I keep hoping there will be some real regulation to prevent this in the future. Hope is fading, though.

[truedelphi]

2. My hope faded the second I realized Geithner wanted

To continue with Credit Default swaps.

Ya know, FDR had congress locked up for 100 days, and they investigated all the major causes of the 1929 stock market debacle. Then they got busy and put Glass Steagall in place.

The Glass Steagall Act then went on to protect the American economy for the next sixty years, until the greedy scum suckers on Wall Street used their money to buy its demise, by way of Congress, who happily sold out to them.

But Obama hates "looking back" - I guess it would be too productive or something. So instead of re-instating Glass Steagall, we have Geithner opposing or ignoring the wisdom in doing that. And the Japanese openly snickering when he visits Japan and says our economy is sound.

Because it is not sound. Our monetary devices - i.e. American currency - will be done in - fini - kaput - in around three years from now.

And I am annoyed that just as Republican Bush lovers supported the stupidity (or criminality) of Bush policies in Iraq, Obama Supporters love Bernanke and Geithner, despite their stupidity (or criminality?) in dealing with the Wall Street crisis.

[SpartanDem]

4. There will be an investigation

the Fraud Enforcement and Recovery Act created the Financial Crisis Inquiry Commission

[truedelphi]

9. So after the horses have left the barn, ie our Bailout monies -

offered to banks/financial firms under TARP I, And the outright handouts And the AIG pass thoughs (notice some redundancy there?) after the trillions of Main Street monies has been given to the crooks, we will investigate and have restrictions.

Oh I am so impressed. And totally utterly convinced the restrictions will be meaningful.

NOT!

[SkyDaddy7]

3. Don't lose hope...

I have watched several in depth interviews with Geithner and they have big plans to begin introducing legislation for massive reform to Wall Street and the Financial system.

Geithner & Summers both know first hand where we went wrong so therefore they know how to fix it...I know many here will not give either one of them a fraction of a second but the reform is coming.

Don't give up.

[DCKit]

5. It'll be real regulation when the other wealthy countries begin dictating to the Fed.

We're going to find ourselves economically isolated if U.S. banks and Wall St. are allowed to make the rules. "Fool me once..." and all that.

Foreign governments and banking systems will never give U.S. deregulation and corporate sponsored "regulation-lite" a chance to damage their economies on this scale again. If Geithner believes he's going to successfully put this corporate-backed shit over on our international economic trading partners, he's living in a different reality.

Some people might think that giant forehead of Geithner's is an indication of his intelligence. I think he just needs a really strong enema.

[AdHocSolver]

6. Making the Fed chief regulator is putting the fox in charge of henhouse security.

It was the Fed under Greenspan that designed and instigated the stock market and real estate bubbles as well as looked aside when the financial corporations promoted their Ponzi schemes.

The Fed is a major cause of our current problems, not a solution. The Fed is a corporate cheerleader and doesn't give a damn about the American public. That is like putting a tobacco company in charge of Health and Human Services.

When they start talking about reinstating Glass-Steagall, as well as other New Deal legislation, then even I will take them seriously.

[w4rma]

7. Those sum up my feelings, also. (nt)

[No Elephants]

8. I would not put all the blame on the Fed. There was de-Regulating Ronnie,

who all but removed Justice Department review of mergers and acquisitions, enable entities to get "too big to fail." And Glass Steagall was repealed by Congress and signed by Bubba, a move he still insists was correct. And then, there was the SEC, comatose under Bushco.

In other words, the Republicrats dismantled so much of what was designed to protect the public from another Depression.

[Deja Q]

10. Do you mean "coup" or is the fed hungry for some fried chicken?

What's wrong with standards anyway?