Geithner has reservations on US bank limits [View All]

Source: Reuters

WASHINGTON/NEW YORK, Jan 21 (Reuters) - President Barack Obama's newest Wall Street crackdown was met with hesitation from Treasury Secretary Timothy Geithner, who is concerned that politics could be sacrificing good economic policy, according to financial industry sources.

Geithner is concerned that the proposed limits on big banks' trading and size could impact U.S. firms' global competitiveness, the sources said, speaking anonymously because Geithner has not spoken publicly about his reservations.

He also has concerns that the limits do not necessarily get at the heart of the problems and excesses that fueled the recent financial meltdown, the sources said.

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The proposals were largely driven by Volcker, a former Federal Reserve chairman who has repeatedly advocated putting curbs on big financial firms to limit their ability to do harm.

Read more: http://www.reuters.com/article/idUSN2123718120100121

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This is fundamentally Paul Volcker's plan, so I'm not surprised that Larry Summers and his lackey and mouthpiece Tim Geithner don't like it.