Geithner: Markets Are Too Important to Be Governed by Markets

Here’s the money quote from Treasury Secretary Tim Geithner, interviewed Monday by CNN about the role of government in regulating Wall Street:

The financial markets are too important to the economy to be left to the markets alone. You need a strong framework of regulations, a much stronger framework than we had.

In Congress, Sen. Chris Dodd (D-Conn.), chairman of the Senate Banking Committee, and Rep. Barney Frank (D-Mass.), who heads the House Financial Services panel, are pushing for sweeping reforms of the finance industry this year, including the creation of a new agency designed to protect consumers from some of the more dubious practices of the banks.

With Congress already facing hugely contentious health reform and climate change bills this fall, however, the Democrats might not want to hold their breath for action this year.