US Treasury Secretary Timothy Geithner is poised to unveil a broad package of sweeping regulatory reforms this week in an effort to prevent further systemic breakdown of the type that led to the economic crisis.
The measures, which Geithner and Federal Reserve and White House officials have been working on for weeks, are expected to include greater government monitoring of banks and financial firms, and wider protection to consumers.
The timing of the announcement, provisionally set for Thursday, might go some way to defuse the criticism of Geithner for his role in granting US$165 million of bonuses to executives at insurer AIG. But those critics showed no sign of letting up last night. "You will see pressure on Geithner intensify," a spokesman for John Boehner, the House Republican leader, said.
A group of angry Republicans has already called for Geithner to resign over the AIG bonus scandal. More are expected to join their ranks this week, while some Democrats have also begun asking questions about Geithner's role in the AIG awards.
Boehner, the top Republican in the House of Representatives, has not yet called for Geithner to step down, but has repeatedly said he believes the secretary is on "thin ice".
- OBSERVER
Geithner to unveil pack of reforms
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