U.S.'s Geithner- must move fast on new regulations

WASHINGTON, Aug 2 (Reuters) - U.S. Treasury Secretary Timothy Geithner said on Monday that new financial rules need to be put in place quickly and old ones need to be rooted out to build a stronger financial system.

'We will move as quickly as possible to bring clarity to the new rules of finance,' Geithner said in remarks prepared for delivery at an event sponsored by New York University.

'The rule-writing process traditionally has moved at a frustrating, glacial pace. We must change that.'

U.S. regulators face a mammoth task as they move to implement a 2,300-page package of financial regulatory reforms signed into law last month.

Geithner, extending an olive branch to Wall Street banks that fought against the tightening of financial rules, said efforts would be made to ensure reforms do not stifle the innovation that has underpinned the dynamism of the U.S. financial system.

'Our system allowed too much freedom for predation, abuse and excess risk, but as we put in place rules to correct for those mistakes, we have to strive to achieve a careful balance and safeguard the freedom, competition and innovation that are essential for growth,' he said, according to excerpts provided by the U.S. Treasury.

He also said it was important not to 'simply layer new rules on top of old, outdated ones.'

'Alongside our efforts to strengthen and improve protections for the economy, we will eliminate rules that did not work. Wherever possible, we will streamline and simplify,' Geithner said.

(Reporting by Tim Ahmann; Editing by James Dalgleish) Keywords: FINANCIAL REGULATION/GEITHNER ([e-mail]; Tel: [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.