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Geithner: Wall Street Is Safe Again

By Jason Farago, Newser Staff

Posted Aug 14, 2009 10:00 AM CDT

(Newser) – The return of hefty profits on Wall Street doesn't mean that banks are returning to previous bad behavior, Tim Geithner insists. In an interview with the Wall Street Journal, the Treasury secretary says the big banks are safer now because "they're running with much less leverage," greater liquidity, and healthier balance sheets. "The weakest parts of the system don't exist anymore."

"I don't think the financial system is reverting to past practice, and we won't let that happen," Geithner says. Nevertheless, the Obama administration remains anxious about populist anger toward the financial sector, particularly concerning outsize pay packets. Today the seven largest bailed-out banks must submit information on their 100 top-paid execs, which the government's new pay czar will review.

[Images (2)]

[Quotes (1)]

Timothy Geithner talks about the country's economic and financial health while testifying before the House Financial Services Committee, Friday, July 24, 2009, on Capitol Hill in Washington. (AP Photo/J. Scott Applewhite)

U.S. Treasury Secretary Timothy Geithner speaks at Time Warner headquarters in New York, Monday, June 15, 2009. (AP Photo/Mark Lennihan)

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The consequence of achieving stability is that people can raise money, can raise equity, can borrow more easily at lower rates, that these markets have liquidity again.
- Treasury chief Timothy Geithner

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COMMENTS

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Showing 3 of 4 comments

IndependentThinker

Aug 14, 2009 3:41 AM CDT

I think that is just another smoke screen to get us to start putting our pinnies back in the system so they can take them... Remember Obama is a wall street man. But do you remember when Shrub wanted to invest social security into the stock market, it would have gone the way of Madoff's clients' money. It makes me wonder if the Shrub guys knew what was coming.

IndependentThinker

Aug 14, 2009 3:37 AM CDT

"Today the seven largest bailed-out banks must submit information on their 100 top-paid execs, which the government's new pay czar will review" I wonder if this is just for show or if something is on the horizon.

JonmarkP

Aug 14, 2009 3:36 AM CDT

BFD - I don't give a rat's ass if Wall Street is "healthy" again. They're predators, they have no clue what it means to be an American or what it means to care. I am absolutely in favor of a .5% Federal tax on all Stock Market transactions to fund Health Care insurance, Medicare and the Social Security system. Let these swine do something for the good of America, just for once.

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Politics • Money

executive compensation • bank • Obama administration • banks • deleveraging • Treasury secretary • Wall Street bailout • Timothy Geithner

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