US Treasury Secretary, Timothy Geithner, has developed plans to make the authority over the US financial system better. These plans will avoid banks to take the same risks that have contributed to the current financial crisis. According to Geithner, a simpler, more effective system is a necessary.
First of all, in the current financial system, there are fundamental gaps. These gaps are responsible for the loss of confidence in the basic of our financial system. New rules are really needed. The new developed plans have to be subject to strong oversight by the government. Openness and more transparency among financial institutions and more integration among regulators are also key subjects.
Further, Mr Geithner outlined five key elements to achieve his aim. Now, it’s the perfect moment to implement these five elements. But the foreign country has an important role in the reforming of the US financial system. The US have to work together with the Europeans to realize their plans.
However, a few weeks ago, Geithner had another opinion. According to him, the US couldn’t wait for consensus with the rest of the world. There’s a limit to how long the US could wait for global co-operation.
According to me, this plan will have positive results. The gaps in the financial system have to disappear. The new rules in the US financial system will give the Americans more confidence in the financial system. I think this is a necessary. The situation in the US is worse, measures have to be taken to repair these confidence.
Source: http://news.bbc.co.uk/2/hi/business/7966023.stm
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I totally agree with Hanne. Like I said in my blog of this week and previous blogs this is really important. There is a strong need for more rules and authority on the financial system. Let us hope it are not only plans...
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