U.S. Senate's Reid: Geithner proposal a step forward

WASHINGTON (Reuters) - The U.S. Senate Majority Leader Harry Reid welcomed Treasury Secretary Timothy' Geithner's proposal for regulating non-banks on Tuesday, saying the administration was moving to address gaps in financial regulation.

"I think this is a tremendous step forward," Reid told reporters outside the Senate, after Geithner's testimony that the government needed authority to shut down troubled institutions like AIG. "There's no reason we have to do it all at once," Reid added, but some steps should be taken "as quickly as we can."