Geithner Tells Wall Street Financial Reform is Your Friend

Treasury Secretary Timothy Geithner told big Wall Street firms that they shouldn’t fear the new financial reform law, saying that the new rules and regulations will form the basis for a stronger and more robust economy than the one that existed under the previous set of rules. The new regulatory regime, he said during a speech in Manhattan on Monday, is not the profit-stymieing bugaboo that some on Wall Street fear but, rather, will create stability allowing for increased growth and prosperity.

This has not calmed many large banks, however, who are watching the impact of the new law with caution and concern. Even before the reform package was signed by the president, they had already begun working out ways to maintain profits in a now more restrictive environment, with many saying that they plan to pass the extra costs on to the consumer.

Geithner also took the time to defend the administration’s stance towards the Bush tax cuts, saying that while the government intends to preserve them for those making less than $250,000 a year, it would be irresponsible to extend them for those making more than that.

The Treasury secretary’s speech is one of many scheduled by the department to discuss the impacts of financial reform and ease fears on some of its more far reaching aspects.