Geithner to Bankers: Crackdown Is 'War'

Treasury secretary tells Wall Street it must accept regulation
By Jason Farago,  Newser Staff
Posted Oct 28, 2009 7:30 AM CDT
Treasury Secretary Timothy Geithner speaks during the Securities Industry and Financial Markets Association conference, Tuesday, Oct. 27, 2009, in New York.   (AP Photo/Frank Franklin II)
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(Newser) – Tim Geithner had tough words for Wall Street bankers yesterday, telling the financial industry's annual conference that they had no credibility to protest new regulation. The Treasury secretary said government had a responsibility to crack down on dangerous practices on the Street and design new laws allowing seizures of institutions deemed too big to fail. "It's a war of necessity, not a war of choice," said Geithner. "And it's a just war."

Geithner also said the government might extend unemployment benefits and introduce "targeted" economic programs, but he stopped short of calling for a second stimulus, saying much of February's package is still taking effect. He also dismissed suggestions that the dollar was losing its global supremacy and could be superseded by an international currency. "I think the dollar will remain the principal reserve currency for a long period of time," he said.