NY Fed to review regulation

NEW YORK – Timothy Geithner, president and chief executive officer of the New York Federal Reserve Bank, acknowledged that regulators have learned a lot over the past few years and set out his vision for how regulation of risk management and internal controls could be improved.

Geithner, speaking at the Bond Market Association's annual meeting, conceded: "The progress achieved in internal control regimes has of course come with some costs," and that "despite the difficulty of adding up all these costs, it is hard to challenge the widespread view that they have been quite substantial".

Geithner said that "provisions that seem optimally designed at any given time are likely to need to evolve as conditions change. That this should occur is a natural aspect of a dynamic