BUSINESS
03/23/2010 05:12 am ET Updated Dec 06, 2017

Geithner: Obama Proposal To Limit Banks Doesn't Mean Breaking Them Up (VIDEO)

President Obama's proposals to rein in banks do not include breaking them up, according to Treasury Secretary Timothy Geithner.

During an interview Thursday with Newshour's Judy Woodruff, Geithner told Woodruff that it's not about breaking up banks, but about reducing their risk-taking.

According to the LA Times's Tom Petruno, Geithner's rejection of the word "break-up" seems to put him at odds with Obama's description of the proposal:

The administration's statement on the plan says that "no bank or financial institution that contains a bank will own, invest in or sponsor a hedge fund or a private equity fund, or proprietary trading operations unrelated to serving customers for its own profit."

That sure sounds like it would force a breakup of the megabanks...


Click here
to read a transcript of the interview. Watch it below.

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