From Bloomberg:
The top two U.S. economic leaders called for new powers to take over and wind down failing financial companies after the government’s rescue of American International Group Inc.“As we have seen with AIG, distress at large, interconnected, non-depository financial institutions can pose systemic risks just as distress at banks can,” Treasury Secretary Timothy Geithner said in testimony to a House Financial Services Committee hearing today in Washington. Federal Reserve Chairman Ben S. Bernanke said “AIG highlights the urgent need for new resolution procedures.”
Bernanke and Geithner also called for stronger regulation to constrain the risks taken by firms that could endanger the financial system. The remarks presage some of the likely changes to U.S. regulations in the aftermath of the worst crisis since the 1930s.
Do we really want to give more power to those who are in denial of their roles in the crisis, but whose policies and decisions probably caused it? That's like intentionally putting a drunk behind the wheel of a car!
