Our source, speaking anonymously, Geithner hasn’t yet spoken publicly on his reservations, said the Treasury chief is concerned that the proposed limits on big banks’ trading and size could impact global competitiveness. Geithner also has concerns that limits on proprietary trading do not necessarily get at the root of the problems and excesses that fuelled the recent financial crisis. However, a White House official has stated that Geithner is on board with Obama’s economic team, and prepared to tow the Presidents Line.
Geithner and Lawrence Summers, the director of President Barack Obama’s National Economic Council, worked closely with Paul Volcker, who heads a panel of outside advisers, in developing the proposals, the official said. Read the full article »»»»