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: