Bailout bank CEO's may be Replaced TOO

The government may require new faces in executive suites at banks requiring " exceptional assistance " in the future , Treasury Secretary Timothy Geither said Sunday .

Critics of the Obama adminstration's move last weekend to force out the chairman of Gernal Motors Corp , Rick Wagoner , as a condition for possible addititonal federal loans say strong government intervention contrasts with measures placed on the finnacial industry in return for billions in infusions .

Geithner denied there was double standard and put banks on notice they may need to change leadership in exchange for accepting more money .

" If , in the future , banks need exceptional assitance in order to get through this , then we'll make sure the assistance comes with conditions , not just to protect the tax-payer but to make sure this is the kind of restructuring necessary for them to emerge for them to emerge stronger " he told " face the nation " on CBS .

"And where that requires a change of management of the board , we'll do that ".

by the associated press

Finance Rule Proposals Raise Viability Questions

Tough as they seem, wull the Obama administration's strict new Wall Street really work? The adminstration's aggresive plan for strict scrunity of hedge funds and other freewheeling investors, part of the biggst expansion of financial restraints siince the Great Depression, is drawing instant opposition from Republician lawmakers and the rules' targets. And skeptics ar questioning whether they would be effective anyway.

Wall Street wizards have proved adept at designing complex financial products to sidestep existing regulations. And Vincent Reinnhart, former director of monetary affairs at the Federal Reserve, says, "You're going to see firms try to figure out how to be under the radar."
For example, private equity investors might try to chop large hedge funds into funds small enogh to operate unregulated, Reinhart said.

Treasury Secretary Timothy Geithner said the nation's economic crisis demands bold action. " We need much stronger standards for openness, transparency and plain common sense language throughtout the financial system."
He told the House Financial Services Commitee.
Republicans wondered whether the overhaul would give federal regulators too much power.

by the associated press