Obama Administration to Propose Sweeping Financial Oversight Regs
On Wednesday, the Obama administration is expected to unveil a long-anticipated revamp of federal financial sector regulations. It is anticipated that the plan will call for sweeping changes to the oversight of financial markets, empowerment of federal regulators, and limits on the amount of risk that can be extended by financial companies. The proposed changes would also enable the government to boost consumer protections and push for changes in loan securitization. Through this plan, the administration hopes to prevent future crises and to increase oversight of the biggest financial players, whose collapse would severely threaten other institutions and the economy.
While the plan has scaled back from its initial aim to consolidate various regulatory agencies, the proposal includes creating a council of regulators with broader coordinating responsibility across financial systems. After its unveiling, the administration's proposal will be debated in Congressional hearings on Thursday.
(Special thanks to Suleen Lee and Kathleen Stetsko for their contributions to this post. )
