TOM HUDSON: The governor of Delaware is just one of the critics of some
of the financial reforms put in place before and since the credit crunch
four years ago. The top money man of the Federal government is defending
the newest rules saying critics suffer from amnesia.
Timothy Geithner was the head of the Federal Reserve Bank of New York
in 2008 when the credit crunch began taking hold. Now he’s Treasury
secretary and is fending off criticism of the Obama administrations
legislative answer to the crisis: the Dodd-Frank financial reform law.
Geithner writes in the “Wall Street Journal,” today quote, these reforms
are not perfect, and they will not prevent all future financial crises, end
quote. But independent banking analyst Kenneth Thomas thinks Geithner
ignores his own actions during the ’08 crisis.
KENNETH THOMAS, INDEPENDENT BANKING ANALYST: With all due respect,
Secretary Geithner has amnesia because the biggest reason why the crisis
was so severe was because he at the Federal Reserve Bank of New York and
Chairman Bernanke and especially Treasury Secretary Paulson at the time let
HUDSON: Secretary Geithner has previously called 2012 a key year for
the reforms as dozens of the rules will be written. For instance, the
Securities and Exchange Commission is working on the so-called Volcker
rule. That would ban banks from using their own money to trade derivatives.
The Commodity Futures Trading Commission is coming up with rules governing
over the counter trading for certain financial derivatives.
Geithner has come under fire before for not being more pro-active in
his previous role with the New York Federal Reserve Bank overseeing the big
financial institutions that wound up in trouble. And we will ask the
Treasury secretary about all of this and more next week. We’ll sit down
with him in Dallas on Thursday, March 8.
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- Full Episode Transcript – Friday Mar 2, 2012
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