Treasury Secretary Timothy Geithner said today that the Obama administration no longer favors a requirement that financial institutions offer only "plain vanilla" consumer products.

"There has been a lot of concern that if you invest the government with the ability to decide what's appropriate here and there, that will lead to less competition and choice," Geithner told the House Financial Services Committee. "The chairman's proposals, which I've had a chance to quickly read, provides a better balance of choice and protection."

House Financial Services Committee Chairman Barney Frank (D-Mass.) last night circulated a summary of his new proposal, which makes changes in the original bill, including the elimination of the restriction on certain financial products and including the NCUA on the board of the new Consumer Financial Protection Agency.