Geithner Says Regulators Will Modify Existing Rules Not Just Add New Ones
When the Obama administration begins implementing the regulatory overhaul bill it will improve or eliminate some existing regulations, not just create new ones, according to Treasury Secretary Timothy Geithner.
"We will not simply layer new rules on top of old, outdated ones. Everyone that is part of the financial system-the regulated and regulators-knows that we have accumulated layers of rules that can be overwhelming. And these failures of regulation were in some ways as appalling as the failures produced where regulation was absent. So alongside our efforts to strengthen and improve protections for the economy, we will eliminate rules that did not work. Wherever possible, we will streamline and simplify," said Geithner, in remarks prepared for delivery later today at New York University.
He also is prepared to urge financial services providers, especially the larger ones, to more closely monitor their operations. so they won't have to be rescued by the government. He will also urge them to improve disclosures to customers, not to have hidden fees and not to push loans consumers can't afford.
President Obama signed the overhaul bill last month and the implementation is just beginning. Last week, NCUA Chairman Debbie Matz and other agency heads met with Geithner to begin planning the staffing and operation of the new Consumer Financial Protection Bureau created by the law.