By Rob Nichols. Fox Business Network
Transcript

8:27 AM

Rich: Treasury Secretary Tim Geithner wants Congress to OK his overhaul and do so quickly. He will warn Congress that time is the enemy of reform and he will ask lawmakers to approve a new independent consumer regulator. Resolution authority for the federal government and create that systemic super regulator. In his prepared remarks Geithner says we cannot permit our largest investment banks or other firms to operate without real consolidated supervision yet obtained government assistance when they collapse. We will impose tough rules on our largest, most leveraged and most interconnected firms. Geithner wants that job to go to the fed and many in the financial-services industry agree.

Rob Nichols: They have been looking at the complex financial institutions; we think they should continue in that role. Should there be another crisis like we saw, to make a comparison to a fire department, they have the trucks and hoses if they ever needed to fight the crisis, we think they're the right entity to do so.

Rich: Industry reps and conservative lawmakers have been at odds over consumer advocates over the consumer financial products agency. House Financial Services Chair Barney frank is offering a compromise. He is proposing to exclude many non banks like lawyers, telecom companies and others from the reach of the new agency, he is proposing to ask firms to offer customers plain vanilla financial products and changing the structure of the proposed agency to include an oversight board including bank regulators. The hearing begins in about an hour.