Geithner: We Can't Go Back

Might Wall Street’s latest round of bonuses have been its last? “I don’t think we can go back to the way it was,” Treasury Secretary Timothy Geithner said on Bloomberg TV today. “We’re going to need to see very, very substantial change.” Geithner said that Wall Street’s pay practices, including end-of-the-year bonuses, “encouraged excessive risk-taking and helped precipitate the financial crisis,” according to Bloomberg. Geithner has ruled out setting caps on compensation, and said that he will reveal a new plan to realign pay with performance in June.