NEW YORK, Aug. 2 (Xinhua) -- U.S. Treasury Secretary Timothy Geithner said on Monday in New York that the government will move as quickly as possible to bring clarity to the new rules of finance.
During a speech at New York University on what will happen next on the financial regulatory front, the secretary said that "the rule writing process traditionally has moved at a frustrating, glacial pace. We must change that."
U.S. President Barack Obama signed financial regulatory reforms into law last month. However, it is largely a work in progress since rules to implement it are still being drawn up.
Geithner said Treasury will try to speed up the rule-making process.
"We had an obligation to rebuild our financial system so it could, once again, be an engine for economic growth and innovation, " he said.
"We will not simply layer new rules on top of old, outdated ones. Everyone that is part of the financial system -- the regulated and regulators -- knows that we have accumulated layers of rules that can be overwhelming," said the secretary.
"And these failures of regulation were in some ways as appalling as the failures produced where regulation was absent. So alongside our efforts to strengthen and improve protections for the economy, we will eliminate rules that did not work. Wherever possible, we will streamline and simplify," he added.
The remarks came amid signs that the economic rebound that started last year is starting to lose steam. Wall Street worries that the new law could hurt the fragile economic recovery and its own advantage in the global financial industry.
"We will not risk killing the freedom for innovation that is necessary for economic growth. Our system allowed too much freedom for predation, abuse and excess risk, but as we put in place rules to correct for those mistakes, we have to strive to achieve a careful balance and safeguard the freedom, competition and innovation that are essential for growth," said Geithner.
For the financial industry, the core challenge is to restore the trust and confidence of the American people and customers and investors around the world, the secretary stressed.
"Don't wait for Washington to draft every rule before you start changing how you do business. Get out ahead of the process and out in front of your competitors," Geithner urged.