U.S. Seeks New Financial Oversight

He already has his hands full, but might Tim Geithner soon receive even more power? In a proposal expected to debut today, the Obama administration is asking to expand Geithner’s ability to swoop in and seize any financial company, including insurers, investment firms, and hedge funds, whose collapse would prove disastrous to the overall economy. The Federal Reserve and the president’s cabinet would also be consulted. The expanded powers would have allowed the government to sidestep the AIG and Lehman Brothers fiascos last year, when the Treasury Secretary’s duties were limited strictly to seizing banks.