These choices probably do not indicate a move toward serious regulation in the fiinancial industry, which may explain why the swing traders drove the stock exchange upward on news of the Geithner pick. For example, he opposes the Treasury plan to regulate the Federal Reserve Bank, and also opposes mandated capital requirements for hedge funds.
He has even characterized the current regulatory system has "an enormously complex web of rules that create perverse incentives and leave huge opportunities for arbitrage and evasion, and creates the risk of large gaps in our knowledge and authority.”
However, in congressional testimony last summer, Geithner did stress the need for "substantial reforms” of the system claiming that the Fed needs "broader" authority to handle the crisis.
Canada.com
Will Geithner at Treasury Keep Fighting For the Fed?
Wall Street Journal Blogs, NY -Nov 21, 2008
With Mr. Geithner as President-elect Barack Obama’s pick to be Treasury secretary, the Treasury plan for Fed regulation is effectively dead. ...A Treasury Contender Schooled in Crisis As Head of New York Fed ... Washington Post
Wall Street lauds likely Treasury pickMinneapolis Star Tribune
1 comment:
The Fed created the crisis quite deliberately. Watch the Money Masters on Google Video or watch Fiat Empire or try Freedom to Fascism ...
With each announcement, Obama provides more evidence that he's an unprincipled political belly-crawler. Understand money and you will understand the corrupt nature of the system. Why wallow in ignorance? Challenge yourself! The time you spend on this blog could be spent presenting real issues to the public. Personality worship is the stuff of fascism.
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