US Treasury wants more state control in financial sector
The US Treasury Secretary has called on Congress to grant him new powers to regulate financial companies like insurance giant AIG. Timothy Geithner says the current rules, under which Washington can only interfere in the management of banks, do not go far enough. He says the collapse of financial firms like AIG could devastate the economy, and that the government must have the power to try to prevent this. Federal Reserve chairman Ben Bernanke supported the proposal at a congressional hearing. This comes one day after Geithner outlined the details of a long-awaited plan to help rid American banks of up to a trillion dollars worth of toxic assets. Geithner told Congress he wanted to ensure that there couldn't be another financial crisis in the future. dw
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