Washington -- U.S. Treasury Secretary Timothy Geithner said Wall Street banks were not backsliding into bad habits, but regulations needed to be tougher anyway.
"The big banks are running with much less leverage now, much more conservative liquidity cushions," Geithner told The Wall Street Journal Thursday.
"There's been a significant shrinking of their balance sheets, getting rid of bad assets and cleaning up," he said. "And the weakest parts of the system don't exist anymore."
Referring to regulatory reform, Geithner said there was "a high probability we'll get stronger protection for consumers and authority to constrain excess risk-taking and create a more stable system."
