Obama Administration Says Regulatory Failure to Blame for Financial Crisis -- Proposes More Regulation

(CNSNews.com) – Treasury Secretary Timothy Geithner told Congress that the administration planned to fix the “basic regulatory flaws” that it thinks caused the financial crisis by instituting more regulations and creating a new regulatory agency to oversee all financial products.

Geithner, testifying before the House Financial Services Committee on Friday, told lawmakers that Obama’s proposal would address the “core causes” of the nation’s financial collapse as well as any problems in the future.

“The president’s plan focuses on the essential reforms,” Geithner said. “It addresses the core causes of the economic crisis. It addresses the areas critical to confronting future vulnerabilities.