Geithner Calls for Finanical Rules Revamp to Be Passed This Year

By MICHAEL R. CRITTENDEN
WSJ

WASHINGTON -- Treasury Secretary Timothy Geithner, hoping to refocus the public's attention and prod the scattered attention of Congress, on Friday called on lawmakers to complete a revamp of the financial regulatory system by the end of the year.

But while Mr. Geithner claimed a national mandate to quickly make changes to an "outdated and ineffective" regulatory system, the vicious ongoing turf war between the regulators that will make up the new oversight structure made clear that policymakers face an uphill climb to enact substantive legislation this year.

Mr. Geithner, appearing before the House Financial Services Committee, said that there should be "no disagreement on the need to act" to address the myriad of problems laid bare by the financial crisis. Lax oversight of financial firms, weak and rarely enforced consumer protections, and firms considered "too big to fail" shouldn't be the norm, he said.

"We cannot afford a situation where we leave in place vulnerabilities that will sow the seeds for future crises," Mr. Geithner said in prepared remarks before the panel.

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