Geithner says to "streamline" regulatory structure

By Alister Bull

WASHINGTON (Reuters) - U.S. President Barack Obama will lay out a proposal for a financial regulatory overhaul next week that will aim to curb excessive risk-taking on Wall Street, Treasury Secretary Timothy Geithner said on Tuesday.

Geithner said the proposed revamp of financial rules would include systemic risk regulations to stop big firms taking on so much risk that they imperil the entire economy.

"The plan calls for bolstering consumer and investor protection. And it will streamline our out-of-date regulatory structure so that our regulatory system matches the size, shape and speed of our modern financial system," he told a Senate Appropriations subcommittee.

U.S. officials worry that the country's patchwork system of regulators is ill-equipped to oversee the complexities of modern finance.

They are weighing a range of options, all of which face potential pitfalls and challenges to secure a green light.

Geithner said as part of the plan, the administration would propose a new body to bring together differing parts of the current regulatory structure to monitor the overall health of the financial system.

"Together, these changes will help prevent another crisis of the magnitude that we have just lived through, and give the government new tools to better cope with similar problems, should they occur in the future," Geithner said.