U.S. News: Geithner Defends Push for New Rules
WASHINGTON -- Lawmakers peppered Treasury Secretary Timothy Geithner with questions about the Obama administration's proposed overhaul of financial-markets supervision, underscoring how the revamp might become bogged down as it inches through Congress.</br></br>Speaking before the Senate Banking Committee Thursday, Mr. Geithner provided the first public defense of the proposal, warning that the country "cannot afford inaction" and must make broad changes to consumer protections and improve the everyday workings of financial markets.</br></br>"Our economy has been brought too close to the brink for us to let this moment pass," Mr. Geithner said before the panel.</br></br>The Treasury secretary faced questions about the White House's push to expand the authority of the Federal Reserve, the fate of finance companies owned by commercial firms, mortgage giants Fannie Mae and Freddie Mac, and financial literacy.</br></br>The role of the Fed was a flash point. Panel members expressed a strong desire for changes to the current regulatory system, but lawmakers on both sides of the aisle were wary of giving the Fed new and extensive powers to oversee risks across the financial system.