Timmy Lays Down The Law

Mr. Geithner wants a whole bunch of new regs and oversight, which is the first thing he's done that I 100% agree with.

“To address this will require comprehensive reform,” Geithner said in prepared testimony for a House Financial Services Committee hearing. “Not modest repairs at the margin, but new rules of the game,”

Geithner called today for a systemic risk regulator to oversee big financial institutions and federal authority to seize them if they run into trouble.

The administration’s regulatory framework would make it mandatory for large hedge funds, private-equity firms and venture-capital funds to register with the Securities and Exchange Commission, and it would require derivatives to be traded through central clearinghouses.

The SEC would be able to refer those firms to the systemic regulator, which could order them to raise capital or curtail borrowing.

I know just the guy he should hire for the role of Systemic Risk Regulator too, and he even likes Tim's plan, he just knows Plan N will have to come afterwards.

Hopefully this is the start of the real work on the economy. All of these are badly needed oversight reforms that will have to be used to fix the problem.