In an interview on Bloomberg Television’s “Political Capital” with Al Hunt, Treasury Secretary Tim Geithner called for an overhaul of compensation practices at financial companies and said the Obama administration’s plan to help realign pay with performance will be rolled out by mid-June.
“I don’t think we can go back to the way it was,” Geithner said. “We’re going to need to see very, very substantial change.”
Geithner during his interview, to be aired tonight and over the weekend, also said that “Wall Street’s pay practices encouraged taking on short-term risk, and helped precipitate the financial crisis. What’s needed is a set of broad standards that federal regulators can use to make sure that doesn’t happen again.”