Frank, Geithner to Roll Out 'Too Big to Fail' Bill

Once-ridiculed Treasury chief now on top of his game

(NEWSER) - After a rough start, Timothy Geithner has found his sea legs. Many were calling for the Treasury secretary’s head after his botched handling of February's bailout speech and the AIG bonuses. But, reports Politico, as the economy stabilizes, Geithner’s getting the hang of things. His regular meetings have gotten the economic team on the same page, and he’s switched from big speeches to quiet off-camera meetings with reporters, where he does better. More»

(NEWSER) - Tim Geithner today proposed a major expansion of federal regulatory powers, reports the Washington Post. In testimony before Congress, the Treasury chief called for hedge funds, derivatives markets, private equity firms, and major insurers like AIG to be brought under strict federal supervision for the first time. His plan, which requires congressional approval, would reverse decades of deregulation. More»

Defends actions during AIG bailout

(NEWSER) - Timothy Geithner today asked Congress for expanded power to take the helm of big, failing institutions like AIG and wind them down in an orderly fashion, Reuters reports. “AIG highlights broad failures of our financial system," Geithner said in unusually spirited testimony before the House Financial Services Committee. "We must ensure that our country never faces this situation again.” Geithner and Ben Bernanke were called before fire-breathing lawmakers to testify about AIG’s recent bonus payout. More»

Treasury sec should be able to seize non-bank firms, says administration

(NEWSER) - The Obama administration is expected to ask Congress for expanded powers that would let the Treasury secretary seize insurers, hedge funds, and other non-bank financial companies whose failure would imperil the economy, reports the Washington Post. While negotiations are ongoing, the plans to expand Treasury authority would represent a major shift from the current model of financial regulation, in which independent agencies have oversight powers. More»

Congress wants oversight of treasury, homeowner assistance

(NEWSER) - As Hank Paulson did the Sunday talk shows, Democrats in the House and Senate set down their own terms for a plan to rescue the nation's financial institutions—one that would give Congress greater oversight over the treasury. Barney Frank, who chairs the House Financial Services Committee, put forward his party's changes to the Bush plan, which also include an assistance program for homeowners and a limit on executive compensation. More»