U.S. Economy and Financial Markets

229209 Resource 128460 120646 120646 1237904539091 1237910839083 Controlled Timothy Geithner Wants New Powers for Government

Geithner wants the government to be able to seize companies like AIG

Timothy Geithner is scheduled to testify before Congress today, expanding on plans for the economy. One of the things he is likely to call for is<a title="Timothy Geithner, AIG, economy, FDIC, U.S. economy, financial institutions, failure, non-bank entities" target="_blank" href="http://www.calculatedriskblog.com/2009/03/geithner-new-powers-needed-to-seize-non.html"> expanded powers for the government when dealing with non-bank financial institutions</a>. Geithner's reasoning is that without the ability of the government to intervene and seize failing non-bank entities (notably AIG), the entire U.S. economy is at risk. The FDIC can already take over failing banks, ensuring that they do not cause turmoil. Geithner would like to see similar powers to seize large insurers and other non-bank financial institutions that are on the verge of failure. It remains to be seen how the financial markets will view this particular suggestion of Geithner's. It comes on the heels of a vote of confidence from Wall Street with regard to the <a title="Timothy Geithner, AIG, economy, FDIC, U.S. economy, financial institutions, failure, non-bank entities, Barack Obama" target="_blank" href="item/229158">Treasury's latest bank rescue plan</a>, and on supportive words from President Barack Obama on 60 Minutes. 9 application/xml false AIG Barack Obama economy failure FDIC financial institutions non-bank entities Timothy Geithner U.S. economy U.S. Economy and Financial Markets Financial news and analysis http://www.fx360.com/?aid=5704 Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.7) Gecko/2009021906 Firefox/3.0.7 127.0.0.1 127.0.0.1 mmarquit 66.182.66.2 false true false false true 128460 blog blogsite/GFTForex/web