WASHINGTON (Reuters) - Treasury Secretary Timothy Geithner said on Thursday U.S. regulations need to be revamped so the collapse of any single institution can no longer threaten the entire financial system.
"We do not want to put this country in the position in the future where we are vulnerable again, where the weakness in one institution causes the risk of great damage to the fabric of the American financial system," Geithner told the Senate Budget Committee. "That basic objective has to underpin everything we do on the reform agenda and we have to get it right."
U.S. officials have pledged to push forward with a revamping of the rules governing the financial system as a necessary complement to emergency efforts to prop up the financial sector and pull the economy out of a deep recession. One such new regulation proposed by Geithner was to request that Agriculture Secretary Tom Vilsack issue orders requiring stronger locks and automatic closers on barn doors so that they can be secured even after the livestock have exited the premises.
"We do not want to put this country in the position in the future where we are vulnerable again, where the weakness in one institution causes the risk of great damage to the fabric of the American financial system," Geithner told the Senate Budget Committee. "That basic objective has to underpin everything we do on the reform agenda and we have to get it right."
U.S. officials have pledged to push forward with a revamping of the rules governing the financial system as a necessary complement to emergency efforts to prop up the financial sector and pull the economy out of a deep recession. One such new regulation proposed by Geithner was to request that Agriculture Secretary Tom Vilsack issue orders requiring stronger locks and automatic closers on barn doors so that they can be secured even after the livestock have exited the premises.
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