Treasury secretary, Timothy Geithner, said “Our financial system failed in fundamental ways,” in a New York Times article on March 26, 2009. It sounds as though both lawmakers and financial industry lobbying groups completely agree with Geithner that smarter tougher regulation is needed.
It took years to overhaul regulation of the financial industry which was related to Depression-era laws that separated commercial banks from investment banks. Geithner says that hedge funds and private equity funds would have to now register with the S.E.C. Credit-default swaps would also come under supervision for the first time. He has proposed to allow the government to seize control of troubled institutions whose bankruptcy might further damage the financial system.
I feel that supervision on financial institutions must happen in order to save what economy that we have left. It is such a shame that no one thought this was a good idea 18 months ago when thing started going bad.
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