3 Mistakes

Simon Johnson does not think highly of Mr. Geithner. His latest article dissects Geithner's speech to the ABA, of which Johnson writes "his history is completely wrong; his logic is deeply flawed; and his interpretation of the Dodd-Frank reform does not mesh with the legal facts regarding how the failure of a global megabank could be handled".

Unbelievably, Mr. Geithner puts a lot of the blame for the Great Recession on countries that did little to regulate financial industries. How could Geithner possibly think that the U.S. was a strong regulator?

Mr. Geithner says, "Some argue that the U.S. financial system is too concentrated, which could promote systemic risks.  But the U.S. banking system today is less concentrated than that of any other major country.”  Why does this mean we will be immune when the next crisis hits?

Finally, Geithner thinks that, because of the requirements of Dodd-Frank, we'll be able to handle the failure of a global megabank. But Dodd-Frank does not include a mechanism that will handle the failure of a global megabank.