Geithner Sees Signs of Life, Says Overhaul is 'On Track'

Comments made by Treasury Secretary Timothy Geitner in a WSJ interview are making headlines this morning. The official aimed at soothing recent investors concerns, saying that plans to overhaul financial regulation are on track and that the Obama administration will not allow continued Wall Street blunders, such as taking excessive risk.

Geithner reassured that while Wall Street is now slowly returning to profitability, it will not return to "business as usual".

"I don't think the financial system is reverting to past practice, and we won't let that happen. The big banks are running with much less leverage now, much more conservative liquidity cushions, there's been a significant shrinking of their balance sheets, getting rid of bad assets and cleaning up. And the weakest parts of the system don't exist anymore."

"The consequence of achieving stability is that people can raise money, can raise equity, can borrow more easily at lower rates, that these markets have liquidity again. The fact that the core parts of the U.S. financial system look like they're profitable is overwhelmingly good."