Fed Official Calls for More Regulation

A top Federal Reserve official called for sweeping new steps to strengthen government oversight of the financial system, offering the most extensive set of ideas yet from the central bank for how to try to prevent a recurrence of the financial crisis of the last 10 months. Timothy F. Geithner, president of the Federal Reserve Bank of New York and a key engineer of the central bank's response to the crisis, including the rescue of Bear Stearns, said large financial institutions need more capital to guard against the risk of an economic downturn.