Tuesday, August 4, 2009
Top U.S. bank regulators spoke out Tuesday against key elements of the Obama administration’s plan to reshape financial regulation, calling some parts unneeded or disruptive.
The officials’ defiance, voiced at a Senate Banking Committee hearing, came despite a warning from Treasury Secretary Timothy Geithner on Friday.
In remarks punctuated with expletives at a private meeting, Geithner urged the regulators to end their turf battles and support President Barack Obama’s plan, said a person familiar with the situation on Monday.
But that seemed to have little impact on the regulators, who took issue with some of the administration’s proposals to tighten oversight of banks and capital markets amid the worst financial crisis in decades and with the economy in recession.