Treasury Secretary Timothy Geithner blamed Republican lawmakers for seeking to weaken reforms that he says have strengthened the US financial system after the 2008 economic meltdown.
“Where are we today, a year since the Wall Street Reform and Consumer Protection Act was signed into law?” Geithner wrote in an opinion piece for Wednesday’s edition of Wall Street Journal.
“The US financial system is in much stronger shape, not just relative to the depth of the crisis, but also relative to conditions that prevailed before it hit.”
Last July the administration passed financial reforms that included the creation of the Consumer Financial Protection Bureau (CFPB) with just six Republican yes votes in the House and Senate combined.
The Republicans are “still working to thwart change,” he wrote in the headline to his opinion piece.
On Monday Senate Republican leader Mitch McConnell said the CFPB needs proper oversight or it will “only multiply the kind of countless burdensome regulations that are holding our economy back right now.”
According to Geithner, “many of those who fought reform during the legislative process are now trying to slow down and weaken rules, starve regulatory agencies of resources and block nominations so that they can ultimately kill reform.”
The reforms have forced large financial institutions to take less risk, he said, adding there remains “a great deal of work to do to repair the damage.”
“I will recommend that the president veto any legislation passed by Congress that would undermine these vital financial protections,” Geithner added.