Geithner comes up empty

July 10, 2009

Tim Geithner took center stage on Capitol Hill today and once again he disappointed.

Geithner went before Congress to sing the praises of the Obama administration’s plan for regulating derivatives–something that’s much needed. But once again, Geithner failed to explain the criteria that will be used to distinguish standard derivatives from so-called customized derivatives.

And that’s pretty important since the crux of the Obama plan is for regulating standard derivatives. A week ago I pointed that the Obama administration had failed to explain the difference betwee the two. And Geithner still hasn’t met this important challenge.


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Broad framework without specifics. That’s what current administration is all about.

Derivatives’ trade should be regulated by co-ordinated global effort. We are in a round-the-clock market and traders may shift to unregulated or less regulated boards such as London, Tokyo or Singapore.

Posted by Ernie | Report as abusive

This derivative crisis is going to cause major firms to collapse. This crisis is just beginning.

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