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5/12/2020 Excerpts of Treasury Secretary Tim Geithner’s Remarks at New York University’s Stern School of Business on Financial Reform U.S. DEPARTMENT OF THE TREASURY Press Center Excerpts of Treasury Secretary Tim Geithner’s Remarks at New York University’s Stern School of Business on Financial Reform 8/2/2010 TG-805 "We had an obligation to rebuild our financial system so it could, once again, be an engine for economic growth and innovation." ... "The reforms that are now the law of the land will help us rebuild a pro-growth, pro-investment financial system." ... "We will move as quickly as possible to bring clarity to the new rules of finance. The rule writing process traditionally has moved at a frustrating, glacial pace. We must change that." ... "We will not simply layer new rules on top of old, outdated ones. Everyone that is part of the financial system - the regulated and regulators - knows that we have accumulated layers of rules that can be overwhelming. And these failures of regulation were in some ways as appalling as the failures produced where regulation was absent. So alongside our efforts to strengthen and improve protections for the economy, we will eliminate rules that did not work. Wherever possible, we will streamline and simplify." ... "We will not risk killing the freedom for innovation that is necessary for economic growth. Our system allowed too much freedom for predation, abuse and excess risk, but as we put in place rules to correct for those mistakes, we have to strive to achieve a careful balance and safeguard the freedom, competition and innovation that are essential for growth." ... "For the financial industry, your core challenge is to restore the trust and confidence of the American people and your customers and investors around the world." ... "Don't wait for Washington to draft every rule before you start changing how you do business. Get out ahead of the process and out in front of your competitors. Find new ways to improve disclosure for your consumers. End hidden fees. Don't push people into loans they can't afford. Demonstrate to your business customers – small and large – that after running for cover during the peak of the crisis you are ready and willing to take a chance on them again. Change how you pay your executives so you are not rewarding them for taking risks that could threaten the stability of the financial system. Make sure you have board members who understand your business and the risks you are taking. And, focus on improving your financial position so that your financial ratings, your cost of capital, the amount you have to pay to borrow, all reflect your own financial strength and earnings prospects, not the false expectation that the government will be there in the future to rescue you." https://www.treasury.gov/press-center/press-releases/Pages/tg805.aspx 1/2 5/12/2020 Excerpts of Treasury Secretary Tim Geithner’s Remarks at New York University’s Stern School of Business on Financial Reform ### https://www.treasury.gov/press-center/press-releases/Pages/tg805.aspx 2/2
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