It’s the end of an era.
Today, U.S. Treasury Secretary Timothy Geithner cautioned against backing off on efforts to set stronger rules for the financial sector.
“Much of the excess risk-taking and careless and damaging financial practices that causes so much damage have been forced out of the financial system,” Geithner said.
“These gains will erode over time if we are not able to put our full reforms in place,” he added.
Geithner went on to say that key components of this reform will be coming this year, including making nonbank financial institutions like hedge funds and insurance companies subject to the same financial regulations.
Money-market funds will also fall under new regulations.
The most striking revelation from Geithner, though, was that the Obama administration also plans to “wind down” Fannie Mae and Freddie Mac as part of its housing reform.
That’s a monumental step. Head over to CNBC for more on this breaking development.
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