Treasury Secretary Timothy Geithner told the Financial Crisis Inquiry Commission that regulation of the financial industry needs to be tightened, but banks need to be allowed to take prudent risk on behalf of clients. Geithner and a few former Treasury Department chiefs acknowledged to the commission that the country was not prepared for the financial crisis and lagged in its response. "If the government had moved more quickly to put in place better-designed constraints on risk taking that captured where there was risk, the crisis could have been less severe, and if the government had moved more quickly to deal with the damage, this would have been less severe," Geithner said.

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