The ultimatetool at Mr. Geithner's disposalfor reining in unsafe practices was to recommend thatthe BoardofGovernorsoftheFedpublicly rebuke a bank with penalties or cease and desist orders.
He won two supporting votes with the addition of Janet Yellen and Sarah Bloom Raskin to the Fed's BoardofGovernors, and could get another if the full Senate gets around to confirming nominee Peter Diamond this year.
Not only is Congress considering shaking up the Fed's regulatory duties, Obama will have the opportunity to appoint three new members of the bank's BoardofGovernors, due to two vacancies and the recent announcement that Fed Vice Chairman Donald Kohn will step down in June.