Geithner outlines plans for US financial system

US Treasury Secretary Timothy Geithner has outlined far-reaching plans to strengthen the government’s authority over the US financial system.



The measures are designed to prevent the kind of systematic risk-taking among banks that has contributed to the current financial crisis.



Mr. Geithner told a US House Committee that a simpler, more effective regulatory system was needed.



He says the government does not have adequate tools to handle the crisis and that new rules of the game are needed to achieve comprehensive reform.



According to Mr. Geithner, the existing financial system has failed in basic, fundamental ways.



Mr. Geithner has also called for more openness and transparency among financial institutions, and more integration among regulators.