June 17th, 2009
03:03 PM ET

Obama: 'A sweeping overhaul'

Program Note: To hear Ali Velshi's take on the new regulations announced today, tune in to AC360° tonight at 10p ET.
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Jennifer Liberto
CNNMoney.com senior writer

President Obama on Wednesday unveiled his long-anticipated plan to restructure how banks and other firms are regulated in the hope of preventing another financial collapse.

The far-reaching effort would reorder the roles of some key agencies to try to tighten government supervision of the financial sector. It would also toughen up standards for big financial firms and create a new agency dedicated to consumer protection.

"We did not choose how this crisis began. But we do have a choice in the legacy this crisis leaves behind," Obama said. "So today, my administration is proposing a sweeping overhaul of the financial regulatory system, a transformation on a scale not seen since the reforms that followed the Great Depression."

Obama proposed getting rid of the embattled Office of Thrift Supervision and merge it with the Office of the Comptroller of the Currency, according to details released Wednesday.

The OTS has been on the hot seat for months for its role as the overseer of American International Group (AIG, Fortune 500) and failed lenders IndyMac and Washington Mutual. The comptroller's office is a Treasury Department bureau that regulates national banks.

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Filed under: 360° Radar
soundoff (One Response)
  1. Isabel, Brazil

    President Obama will need to hit again on the fly as he did in an interview with television channel. Only that this time, he will have a double challenge: to be sufficiently tough to prevent malpractice happening again in the financial sector, but he can't put a plaster, to point to not work and offer new products.

    June 17, 2009 at 4:34 pm |