Friday, May 8, 2009

Summers to Lead Regulatory Reform, Geithner Wants to Move Fast

Reuters reported:

National Economic Council Director Lawrence Summers, a senior adviser to President Barack Obama, will lead the effort on regulatory restructuring, the sources said.

Geithner told Reuters Television on Friday the administration wants to move swiftly. "We're going to be laying out to the Congress the broad comprehensive framework within the next couple weeks, and we hope to move forward quickly with legislation," he said.

That's odd, Tim told Charlie Rose that regulatory reform could take up to three years. Watch for free passes for private equity underwriters and sovereign wealth funds. Obama knows drama, so hedge funds will come under scrutiny.

Don't expect the Fed to do anything about financial products that added risk during the meltdown. Naked credit default swaps, naked short selling, securitization, and derivatives remain in the mix. Greed and leverage are restarted on the taxpayer's dime.