|
|
US Treasury Secretary Timothy Geithner welcomed the European initiative for compensation reform. Speaking at the G20 pre-Pittsburgh meeting, he reiterated that a fundamental change is necessary.
“In addition to capital and compensation, more work needs to be done on over-the-counter derivatives and cross-border resolution frameworks”, Geithner underlined. “The great failure of regulation was the failure to prevent the build up of excess leverage and risk within and alongside the banking system”, he sai. He then called for stronger international financial institutions as a critical part of the reform agenda.