The country’s financial system needs “substantial reforms” and that was true before the current crisis, New York Federal Reserve Bank president Timothy F. Geithner told the House Financial Services Committee yesterday.

“Looking forward, the United States will have to undertake substantial reforms to the framework of policy, regulation and oversight of the financial system,” Geithner testified, according to text of his remarks released by the Fed. “There was a case for reform before this crisis. The regulatory framework in the United States was designed in a different time for a very different type of financial system than the one we have today. Nonetheless, many observers believed that this framework, although messy and complex, worked reasonably well. It is harder to make that case today.”

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