Geithner to Call for Higher Capital for Systemic Firms

WASHINGTON — Treasury Secretary Tim Geithner is expected to call this morning for increasing capital requirements on all systemically important financial institutions and imposing additional liquidity, counterparty, and credit risk management requirements, according to officials familiar with the testimony.

If a systemic institution's capital level declines, the systemic risk regulator should put in place a prompt-corrective action program, similar to what banks and thrifts face now, Geithner is expected to say.