Financial Times FT.com

Tim Geithner’s bid for new power to force a restructuring at failing financial institutions is securing broad approval in Congress, but may prove worrying to creditors.

The AIG collapse would have been handled better with new powers, Mr Geithner has told legislators

The Treasury secretary, who returns to Capitol Hill on Thursday to set out his vision for regulatory overhaul in the US, released more details on Wednesday on a plan for a legal framework to put a “non-bank” into receivership at the behest of the government.