May 13th, 2009
04:32 PM ET
11 years ago

Fortune: Geithner to rein in derivatives

Treasury Secretary Geithner is seeking authority to regulate derivatives.

Treasury Secretary Geithner is seeking authority to regulate derivatives.

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."

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Filed under: Timothy Geithner
soundoff (14 Responses)
  1. Rick

    The goose-stepping towards socialism continues.

    May 13, 2009 06:13 pm at 6:13 pm |
  2. RWE

    this guy can't even pay his taxes properly.

    May 13, 2009 06:39 pm at 6:39 pm |
  3. Willy Brown

    Geithner is a moron!

    May 13, 2009 06:46 pm at 6:46 pm |
  4. Obama is a Disaster

    Hey Timmy – pay your taxes sweetie !

    May 13, 2009 07:16 pm at 7:16 pm |
  5. Buddy

    Amazing... there are thousands of comments on the other more "interesting" stories about Cheney and his big mouth etc.... However, this story here is actually germane to a lot of our financial problems and is far more important than anything that Cheney, Palin, Steele or Clinton for that matter, and there is not a single comment on this story. Shame on you Americans..... SHAME!! You love drama and soap opera garbage more than the nuts and bolts of your financial system and economic democracy. Shame!

    May 13, 2009 07:30 pm at 7:30 pm |
  6. Hans Brecker, Albany NY

    Yay Geithner, It's about time we lose these useless "investments" and get back to investments with some value. Anybody ever hear of Mortgage-backed securities? That's why we are where we are today because of DERIVATIVES!!!!!!!!

    May 13, 2009 07:46 pm at 7:46 pm |
  7. Lesley Anne

    Finally. I hope Congress passes this legislation and doesn't cave in to the special interests that contributed to their campaigns so heavily. Oh, right, what was I thinking!

    May 13, 2009 07:47 pm at 7:47 pm |
  8. Slider

    You're late, Timmy.

    The work of Rubin has already run its course.

    May 13, 2009 08:11 pm at 8:11 pm |
  9. annie for Palin

    tiny timmie tax cheat couldn't even oversee his own taxes – how can he oversee anything else?

    May 13, 2009 08:15 pm at 8:15 pm |
  10. No Hope

    My question is How do you trust a TAX CHEAT that is in charge of the Treasury Dept.

    May 13, 2009 08:17 pm at 8:17 pm |
  11. Neil

    I wish we could get back to a system that says "if you take the risk you take the loss." People who invested in high risk plans should bear their own loss. It's like cops letting a drunk driver back behind the wheel because he just can't afford not to drive. Sooner or later somebody gets hurt. And it's usually not the driver.
    And we don't need "oversight." That's another one of those meaningless government terms designed to deceive us into thinking somebody is doing something. What we need is regulation. Firm legislative regulation actionable civilly and criminally.

    May 13, 2009 08:39 pm at 8:39 pm |
  12. DaBird

    This is a great move. I can't stand Geithner or Obama (a lie a day), but this is just gambling on Wall Street.

    May 13, 2009 09:03 pm at 9:03 pm |
  13. ib

    This guy couldn't keep up with his own taxes and now is going to controll oversight gaps; give me a break.

    May 13, 2009 09:20 pm at 9:20 pm |
  14. Remedios, MD

    You go get'em Geitner, END THE GRAVY TRAIN and that's when folk's true "greedy" colors start to show.

    May 13, 2009 09:26 pm at 9:26 pm |