Geithner: Wall Street profits doesn't mean return to bad habits.

[Kdillard]

http://www.foxnews.com/politics/2009/08/13/geithner-wall-street-profit-doesnt-mean-return-bad-habits/


"Treasury Secretary Timothy Geithner said in an interview with the Wall Street Journal that the Obama administration wouldn't allow Wall Street to return to such old habits as taking on excessive risk, and that plans to overhaul financial market regulation were on track.

Geithner pushed back against criticism that Wall Street, which is returning to profitability, is also returning to business as usual.

"I don't think the financial system is reverting to past practice, and we won't let that happen," Geithner told the Journal. "The big banks are running with much less leverage now, much more conservative liquidity cushions, there's been a significant shrinking of their balance sheets, getting rid of bad assets and cleaning up. And the weakest parts of the system don't exist anymore."

Some banks, including those that received government bailout money, are earning record profits, increasing pay and ramping up risk. Goldman Sachs, for instance, recently recorded its most profitable quarter ever and boosted its degree of risk-taking as measured by how much money it could lose in a single day.

Geithner said a functioning and profitable financial system was a "necessary precondition to a stronger economy."

"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," Geithner said. "The fact that the core parts of the U.S. financial system look like they're profitable is overwhelmingly good."





So we know what our big fights are going to be this fall Healthcare reform and financial reform.

[xchrom]

1. ...

:rofl: oh that tim geitner -- what a kidder... he cracks me up.

[truedelphi]

3. Did Tim have you guffawing away last weekend

As he announced that Congress should raise the debt ceiling?

Apparently the twelve point one trillion dolalr debt ceiling is too low.

And Bernanke says all is well. Combining these two folks and their two separate opinions (but opinions which cancel each other out), made me realize that today was a great day for those of us who love to laugh.

[xchrom]

4. it was priceless! --

they really haven't a clue between them -- and they say things like that and it's so obvious.

anyway -- past laughing about it -- i don't much care any more.

[uponit7771]

6. They have to keep buyin treasuries or the 10 yr will spike

[MannyGoldstein]

2. Fortunately, The New Rules on Banks Will Prevent More Catastrophe

Actually, I can't think of even a single new rule, not a one, but I can't imagine that there aren't any - that would be too ridiculous.

[uponit7771]

5. He made the Chinese laugh and now he's making us laugh too...what a kidder

[Vidar]

7. Geithner & his Wall Street buddies belong in prison.

[quantass]

8. It's good to know Main Street is still the nobodies...

Be rich or die and be nothing....i am amazed how congress will bend over backwards to help the rich and debate and kill any bill such as healthcare reform to help the poor or for that matter help themselves (the government) from going bankrupt in 10 years with all these silly payouts to the rich -- medicaid part d, bank bailouts that just take the money and convert it to heavy bonuses with no regulations, etc....it never ends..

The U.S. is the Roman Empire crumbling. China will be the next U.S. for years to come. I am just hoping Canada doesnt get sucked down with the U.S. when it obviously goes broke soon.

[leftofthedial]

9. except for the part where nothing's changed

except, of course for the part where they're lighting their Cuban cigars with OUR hundreds.

[OwnedByFerrets]

10. FU G

Fuck you Geithner.

[Joanne98]

11. Kinda late isn't he?