Moody's is the latest to warn that the tax deal could imperil the United States' fiscal position.
The rating agency said in a report Monday that last week's agreement between the White House and congressional Republicans should bolster economic growth in the next two years – but at the expense of the nation's already perilous budget position down the road.FULL STORY
NEW YORK (Fortune) - Treasury Secretary Tim Geithner set plans Wednesday to rein in the wild and wooly derivatives markets.
Geithner proposed requiring that over-the-counter derivatives such as credit default swaps be traded on exchanges, and that all major dealers in derivatives markets be subject to federal oversight.
Geithner said the rules would bolster the stability of financial markets, promote efficient and transparent pricing and help regulators stamp out fraud and abuse.
Appearing at a press conference in Washington, Geithner said he expects to propose the new framework to Congress in coming weeks as the administration and legislators hash out new laws governing derivatives markets.
"The financial crisis was caused by - and exposed – significant gaps in oversight," he said. "We are committed to working with Congress to create more comprehensive system."
NEW YORK (CNNMoney.com) - Treasury Secretary-designate Tim Geithner called for bold action to blunt the economic downturn and promised to tighten the terms for companies getting federal financial help.
In prepared remarks to be delivered Wednesday morning before the Senate Finance Committee, Geithner called on senators to support the Obama administration's $825 billion stimulus plan. The comments come as the Senate panel prepares to consider whether to confirm Geithner as the nation's top financial officer.
"Senators, the ultimate costs of this crisis will be greater, if we do not act with sufficient strength now," Geithner's testimony read. "In a crisis of this magnitude, the most prudent course is the most forceful course."