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In his opening statement on July 24th before the House Committee on Financial Services, Secretary Geithner discussed the Administration objectives and priorities underlying the Financial Regulatory Agency Restructuring plan. In the oral statement, a clip of which is shown at left, the Secretary emphasized the need for the two new agencies being proposed in the plan: the Consumer Financial Protection Agency and the Financial Services Oversight Council. The CFPA was designed to better target abuses by imposing uniform standards across all institutions and by having authority over sectors the Administration sees as having been under/unregulated. The FS Oversight Council is to promote financial stability by addressing risk taking practices, including the use of leverage seen as excessive, that are thought to have contributed to the current crisis by (1) addressing a broader range of institutions, (2) working toward international cooperation and enforcement, and (3) having stability as its primary goal, which is not true of other regulators according to the Secretary’s statement.
The full text of the statement, which includes other topics, is available here.
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