The Regulation Train Keeps Moving...

Recent announcements from Treasury Secretary Timothy Geithner indicate that financial institutions will face far-reaching and economically significant regulation.

The New York Times reported that Geithner said, "Our system failed in fundamental ways. To address this will require comprehensive reform. Not modest repairs at the margin, but new rules of the game."

The Financial Times reported that "the heaviest demands would be placed on institutions deemed to be systemically important" to the financial system. What this includes is not only banks, but also insurance companies, significant financing organizations such as GE Capital, and maybe even significant private equity and hedge funds.