Geithner on Regulatory Reform. Oh Lord.
Sorry but anything that Geithner endorses can't possibly be a good idea. Look at the dude's track record!
Treasury Secretary Timothy Geithner on Tuesday expressed support for changes made to major legislation expected to come to a vote Wednesday to create a "sweeping" Consumer Financial Protection Agency and impose new transparency requirements on derivatives.
"There are some improvements to the bill, but core reforms seem intact," Geithner told reporters, referring to changes made to an Obama administration proposal on bank-regulation reform introduced by House Financial Services Committee Chairman Barney Frank, D-Mass.
Frank's committee has scheduled a vote Wednesday on legislation to hike oversight over derivatives and create the CFPA, which as drafted would rewrite rules for mortgages and credit cards in response to the financial crisis. It would perform on-site exams of banks as part of its effort to protect consumers from problematic mortgage and credit-card products.
However, legislative consideration on the measures is likely throughout the week. Geithner said that even though it was the start of the bank-reform legislative effort on Capitol Hill, Frank and other key lawmakers were making a lot of headway. "This is the beginning of the legislative process. They are making a lot of progress in figuring out where the votes are."
The reform effort to create the financial agency represents the "most sweeping set of changes" for consumer protection in a very long time, according to Geithner.
The Obama administration and Democratic lawmakers on Capitol Hill argue a new CFPA is necessary, in part, because bank regulators, including the Federal Reserve, failed to write rules adequately protecting consumers from problematic loans and products.
Geither and Frank. Oh yeah, that sounds like a wonderful combination.