Secretary Tim Geithner Discusses the 'Healthy, but Slow' Economic Recovery - ABC News:
MORAN: Why? What in this package today would have prevented what happened last fall?
GEITHNER: ... maybe three key things. The first is we need to give consumers better protections against the risk they get taken advantage of....
The second is to make sure that banks can't take on this much risk and other institutions can't take on risk that threatens the basic fabric of the economy. And so we've put in place much stronger protections, safeguards, stronger constraints on leverage, capital requirements.... again"
And the third because we're not going to be able to prevent....all crises in the future, we need to have better capacity to manage...potential failure of large institutions
MORAN: Now one of the things you're already hearing is that in the effort to protect the system you're stifling it. Too much new regulation and you'll crush the life out of the financial system.GEITHNER: We've got to get the balance right. I don't think we had it right.
and then later (it is a pretty long interview):
"MORAN: One of the things in this proposal is more power for the Federal Reserve Board and that is very controversial. There are a lot of people saying that's a dangerous thing to do. The Fed should just be about the money policy and not get involved in regulation. What do you say to that?
GEITHNER: All central banks, including ours, our Federal Reserve, are given responsibility for monetary policy, to keep growth stable over time, inflation low and stable. But alongside that responsibility, in the United States, almost 100 years ago, an in countries round the world, central banks also have this critical responsibility for financial stability.
The question is, and the challenge is to make sure they have the authority to discharge that responsibility well."