Tim Geithner: Banks' Interests 'Not Aligned' With Those Of American Economy

Despite warnings from JPMorgan Chase CEO Jamie Dimon that the U.S. government may be suffocating the American economy recovery through over-regulation, Treasury Secretary Timothy Geithner says he isn't concerned.

In fact, he says the big banks should stop complaining.

"Don't listen to the banks about this kind of question," Geithner told CNBC's Steve Liesman on Monday. "Their interests are not aligned perfectly with the broad interests of the American economy."

Geithner goes on to say that complaints by banks, most recently surrounding what they describe as excessive regulation in the form of increased capital requirements, are unfounded. "American banks have much more capital relative to risk than they had before the crisis. And they are in a very good position to thrive, not just to manage."

This isn't the first time Geithner has taken on America's banking sector. In June, the Treasury Secretary stated that large banks were spending "a huge amount of money to erode, weaken, (and) walk back," reports the Wall Street Journal.

On Monday, Geithner reiterated those sentiments. "Their (banks) job is to evade, or avoid, or weaken, any constraint on their ability to operate," he said in the interview.

In recent months, the Obama administration has come under pressure to speed up the enforcement of rules and regulations passed in the Dodd-Frank legislation. According to ProPublica, federal agencies missed all 26 of the Congressionally-mandated deadlines to set up a system of enforcement.

But despite concerns of speed, Geithner vowed he would not expedite the enforcement process purely for the sake of appearance. "We're going to be very careful to make sure that we get these rules right," he said. "And we're going to take as much time as we need to get them right."

Watch full CNBC interview here:

Comments

[watchclock]

06:31 PM on 07/19/2011

He didnt say that when obama bailed them all out.

[addisonsteele]

05:38 PM on 07/19/2011

As Thomas Jefferson said: "Merchants have no country. The mere spot they stand on does not constitute so strong an attachment as that from which they draw their gains."

Just consider the fact that the only reason the Mexican drug cartels are in business is that banks are laundering their money.

[NorCalSurfer]

02:21 PM on 07/19/2011

As far as the headline goes, and the actual economic mess itself, Geithner would know about the system being unblalanced and overly streched to one side of the financial spectrum. Tim had his hand in the cookie jar, so he knows exactly where all the cookies are.

[StopMakingSense2]

01:25 PM on 07/19/2011

Looks like he won't be trying to switch parties anytime soon! Republicans think the government is just a support system for corporations..

[Terri Skau]

11:53 AM on 07/19/2011

How dare JP Morgan Chase open there mouthBig Bank Profile: JPMorgan Chase
Federal taxpayer bailout received: $94.7 billion
Lobbying fees in 9 months after bailout: $4.2 million
Campaign contributions in 2008 federal elections: $6.0 million
Profits for 1998-2008: $97.6 billion
Profits for the first half of 2009: $4.86 billion
Bank fees for first half of 2009: $3.45 billion
Change in bank account fees (2003-08): +249.5%
Percent of first half 2009 profit from fees: 71%
Credit card income for first half of 2009: $3.56 billion
Median JPMorgan Chase bank teller wage: $10.58/hour or $22,006 annually
2008 CEO Jamie Dimon pay: $19.7 million (893 times median teller wage)
2008 bonus pool: $8.7 billion
First half 2009 bonus and compensation pool: $14.5 billion
Cash bonuses (top 5 execs) last 10 years: $254.9 million
Effective tax rate in 2008: -33.4%
Offshore subsidiaries in tax havens: 53
s.

[Terri Skau]

11:34 AM on 07/19/2011

Timmy, Timmy, Timmy. Now your the boy crying wolf and we the American People are not going to come running...

[rb4028]

10:33 AM on 07/19/2011

Duh!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! that's really bright of you Tim Duh!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! for how many years has this been happening? Duh!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[dadumdee]

09:02 AM on 07/19/2011

Mr. Geitner, the place to talk that kind of shiggity is at your desk, not on CNBC. Get to work!

[redonthehead]

08:03 AM on 07/19/2011

Why does Geithner look like Eddie Munster?

[libertymen]

07:23 AM on 07/19/2011

Has this guy been reborn?
Wasnt he part of the problem in the first place?
I dont want to hear anything from Summers,Geithner,Rubin.
Why Obama would pick such tainted people makes me wonder.!!!???

[NorCalSurfer]

02:21 PM on 07/19/2011

Uhh, dino, maybe?

[rigslip]

06:56 AM on 07/19/2011

Geithner, a 10 watt lackey in a 100 watt world.

[IHATEFOXNOISE2]

04:46 AM on 07/19/2011

Tim Geithner: Banks' Interests 'Not Aligned' With Those Of American Economy

GREAT REVELATION there Tim...but it's a day late and a dollar short. You should have thought of that the first day you took your Treasury Secretary job.

[ggs83]

12:11 AM on 07/19/2011

Why didn't Geithner do a little more for the middle class instead of protecting the so called banks? Why isn't somebody in jail? Now that he is leaving, he wants to sound like he cares about America?

[Peter Boehringer]

08:10 AM on 07/20/2011

One more guy trying to expunge his conscience.

[Brer Orabbit]

11:48 PM on 07/18/2011

Steve Wynn, the CEO of casino company Wynn Resorts, delivered on his company's quarterly conference call today [July 18, 2011] . . . [W]hat I consider to be a total lack of leadership from the President . . . And I'm saying it bluntly, that this administration is the greatest wet blanket to business, and progress and job creation in my lifetime. And I can prove it . . . all of us in this market place that are frightened to death about all the new regulations, our healthcare costs escalate, regulations coming from left and right . . . [He] keeps using that word redistribution. Well, my customers . . are frightened of this administration.And it makes you . . . not invest your money. . . . And those of us who have business . . . are going to sit in fear of the President. . . . They'll say . . . this is Obama's deal and it's Obama that's responsible for this fear in America. . . . [He] keeps making speeches about redistribution and . . . businesses that [are] holding too much money. We haven't heard that kind of talk except from pure socialists. Everybody's afraid of the government and . . . And I'm telling you that the business community in this company is frightened to death of the weird political philosophy of the President of the United States. And until he's gone, everybody's going to be sitting on their thumbs.

[karen1p]

12:04 AM on 07/19/2011

Steve Wynn is not a businessman, he's a mobster.

[ggs83]

12:09 AM on 07/19/2011

I remember Steve Wynn from some prior years and he always blames others for his troubles and right now the President is everyone's easiest target and Wynn will use that until he gets fired like before. Whiner from way back

[Vic22]

10:52 PM on 07/18/2011

What we need is Tyler Durden

[Janet Inkley]

11:32 PM on 07/18/2011

I think you just broke the first rule.