Treasury Sec. Geithner says states will play a ‘crucial role’ in enforcing new consumer rules

Geithner: States ‘crucial’ to enforcing new rules

WASHINGTON — Treasury Secretary Timothy Geithner is telling state attorneys general they will play a “crucial rule” in protecting consumers from financial abuse under the Obama administration’s proposed overhaul of financial regulations.

The Treasury Department says Geithner hosted a conference call Thursday with 14 state attorneys general to discuss the plan. Geithner’s comments focused on a proposed new agency intended to protect consumers.

The agency would set minimum standards for most companies offering consumer financial products. For the first time, states would be able to override federal rules with stricter standards of their own.

Critics in the financial industry say that would be onerous for national companies trying to follow 51 different sets of rules.