Seems Geithner wants even a bigger govt "fix" in Wall Street, with unprecedented power to make decision on which corporations they can kill off or allow to continue. Of course remember, some are "too big to fail", receiving special govt handling and coddling, while others will be forced out if Geithner gets his way, by means other than normal market forces. Grab more power, grab all the power you can, make govt more centralized, make govt do more than just regulate to insure honesty, let govt be the one who decides can stay and who must go out of business. Give more and more power to the Federal Govt. Time for a change in govt???
The two leading architects of the financial bailout made the case Thursday that Congress must give regulators more power to curb risk-taking on Wall Street.
Treasury Secretary Timothy Geithner told a special panel investigating the financial crisis that the government should have acted more aggressively ahead of the crisis. He used his testimony to push for the Obama administration's financial regulatory overhaul, which has reached a critical point in the Senate.
The government "didn't move quickly enough and forcefully enough to try to contain the damage," Geithner said.
He warned that big banks now expect the government to bail them out for the good of the broader system, a dangerous precedent set by the government's reaction. (jd- yeah? who caused that perception? the same ones now wanting to do the "fix"?)
Geithner said the focus must be on making failures less damaging.(jd-obviously he doesn't understand the word "failure" yet.) The legislation would create new rules allowing regulators to dismantle large financial companies at risk of collapse. (jd-stupid. what will that cause? Investors to dump at risk companies even quicker) It would be similar to the way the Federal Deposit Insurance Corp. closes small banks, but financed through money collected from banks and investors. (jd-no, it won't, this is entirely different than insuring deposits, there's no insurance of a stock price)
A fundamental cause of the crisis, Geithner insisted: the lack of authority for regulators to restrain risk-taking by financial firms operating outside traditional rules. The legislation before Congress would help fix that by giving regulators authority over firms in the so-called "shadow" banking system, he said. (jd-no, it will make every corporation become wards of the all powerful state, which is Communism)
Your favorite shows are back!
Don’t miss your dramas, sitcoms and reality shows. Find out when and where they’re airing!