In a speech today, U.S. Treasury Secretary Timothy Geithner had a message for the financial industry: Don’t wait on the Obama Administration to draft reform rules to “start changing how you do business.”
Geithner said the administration will “move quickly” to draft new rules to support the sweeping Wall Street reform bill signed into law by President Obama July 21.
The reform creates a new consumer financial protection bureau and sets up a new oversight regulatory body to monitor – and dismantle if necessary – faltering institutions that could destabilize the economy if allowed to fail on their own.
According to prepared remarks for a speech at New York University’s Stern School of Business, Geithner challenged the financial industry to “restore the trust and confidence” of Americans.
“Don’t wait for Washington to draft every rule before you start changing how you do business,” Geithner said. “Get out ahead of the process and out in front of your competitors.
“Find new ways to improve disclosure for your consumers. End hidden fees. Don’t push people into loans they can’t afford. Demonstrate to your business customers – small and large – that after running for cover during the peak of the crisis you are ready and willing to take a chance on them again. “
The Treasury secretary also said the new reform rules will not just create an overwhelming new layer over outdated rules.
“So alongside our efforts to strengthen and improve protections for the economy, we will eliminate rules that did not work. Wherever possible, we will streamline and simplify,” Geithner said.
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