U.S. Treasury Secretary Timothy F. Geithner said risk-management failures at firms including JPMorgan Chase & Co. (JPM:US) prove the importance of the Dodd-Frank financial rules overhaul.
“We still have unfinished business,” Geithner said in remarks prepared for a meeting of the Financial Stability Oversight Council in Washington today. “Consider the failures of MF Global and Peregrine Financial, the risk-management failures at JPMorgan, the abuses surrounding Libor, or the financial threats from Europe.”
Geithner is the chairman of the council, which was created by Dodd-Frank to prevent another financial crisis. The panel also includes Federal Reserve Chairman Ben S. Bernanke, and the chairmen of the Securities and Exchange Commission and the Federal Deposit Insurance Corp.
Geithner said the council, in a closed session earlier today, designated eight so-called financial market utilities, such as clearinghouses and exchanges, as systemically important to the financial system.
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