Leave your feedback Share Copy URL https://www.pbs.org/newshour/show/calls-intensify-for-expanded-financial-regulation Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Transcript Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke testified before Congress Tuesday on the flap over AIG bonuses and called for increased regulatory powers. Analysts assess the real-world impacts of strengthening financial regulation. Read the Full Transcript Notice: Transcripts are machine and human generated and lightly edited for accuracy. They may contain errors. JUDY WOODRUFF: In their session before Congress, Secretary Geithner and Fed Chairman Bernanke put the issue of government regulation front and center once again.We check in now with two people who have followed this closely. Lynn Stout is a professor of corporate and securities law at the University of California at Los Angeles. She specializes in corporate governance and regulation.And Dino Kos is the managing director of the New York firm Portales Partners, which provides research to institutional investors. He's also the former executive vice president at the New York Federal Reserve.Thank you both for being with us.And, Dino Kos, I'm going to turn to you first. We just heard one member of that House committee say to Chairman Bernanke and Secretary Geithner that there are many more AIGs out there. Do you think he's right about that?DINO KOS, Former Vice President, Federal Reserve Bank of New York: Well, I don't know that there's a lot of them out there. I think the point is that there are non-bank financial institutions that are important to the economy, that are important to the financial system, and the government doesn't really have an effective mechanism, the capacity to wind down and put those kinds of firms into conservatorship if they run into trouble.And that's the authority that they're trying to get, but I wouldn't jump to the conclusion that there are many more out there that are in the same position as AIG is. JUDY WOODRUFF: Well, Lynn Stout, what about this power that Secretary Geithner and Chairman Bernanke are asking for? We don't know a lot of detail yet, but essentially they're saying the government needs the power to oversee, to regulate these non-bank financial institutions. Do you think they should have that power? LYNN STOUT, UCLA Law School: Well, at the moment, what they seem to be discussing is what they would need to do to step in and clean up the mess when you get a disaster of the AIG sort.It's interesting. I would prefer to see a little bit more discussion about how you can prevent these disasters from occurring in the first place. It would be much better if, instead of focusing our attention on how to take over a failed financial institution, we maybe put a little more time into thinking about how to keep them from getting in positions where they're failing.