By Michael O'Brien - 06/13/09 04:56 PM EDT
Treasury Secretary Tim Geithner hinted Saturday that the Obama administration would begin to lay out its long-awaited proposals to reform financial regulations.
Speaking at a financial ministerial meeting for G8 countries in Italy this weekend, Geithner said the U.S. would outline its proposals this coming week, which he said he hoped the other countries would mirror.
The proposals will include tougher oversight of financial institutions and markets that span globally, and higher standards for capital requirements.
"More broadly, we will call on the international banking regulators to develop proposals by the end of this year for countries to have the necessary tools to quickly resolve failures of cross-border financial firms," he said, alluding to reformed "wind-down" authority that would revamp the way failed banks would be disassembled and sold off.
National Economic Council Director Larry Summers pointed toward elements of coming financial regulation in his speech before the Council on Foreign Relations on Friday.
Summers indicated the administration's proposals might look at curbing systemic risk, and determining a way to arbitrate between nations' competing financial regulations.
"If we can reform our financial system, we will minimize the recurrence of the situation we all find ourselves in today," he said.
Geithner said that the U.S. would also push other G8 countries to toughen their rules for banks and other financial institutions.
"Because markets are increasingly global, the financial rules of the game we are responsible for at the national level need to converge toward higher standards," he said. "We need a level playing field globally, or the effectiveness of our national safeguards against risk will be undermined."