Geithner backs watchdog
US TREASURY secretary Timothy Geithner yesterday threw his weight behind a proposal to slim down plans for a financial consumer protection watchdog to ensure it passes into law.
Geithner said a plan by House Financial Services Chairman Barney Frank for paring back the scope of the Consumer Financial Protection Agency (CFPA) should be adopted.
“The broad thrust of those proposals look very encouraging and promising to us,” Geithner said. The toned-down CFPAplans could overcome fierce opposition to the agency to protect consumers, which is a key part of President Obama’s plans for reform.
Under the plans, lawyers, retailers, car dealers, accountants and real estate brokers could be exempted.
Geithner also said large financial companies would not automatically receive bailouts in the future, as the taxpayer should not end up footing the bill for financial failures.