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Let's see if the Obama administration can get this party started! AP Photo - Pablo Martinez Montivais
The Obama administration has detailed their reform of the regulation of the finance industry - finally!
Many recognize that much of the financial crisis could have been prevented with proper financial regulation, rather than the lax system that existed with monster-sized holes.
As CNNMoney points out in their article, the Obama administration is trying to change the way the government supervises banks and other financial firms.
This includes giving more power to the US Department of Treasury and the Federal Reserve. More important to consumers, there will be a specific consumer protection agency and the SEC will have more power as well and require hedge funds to register with them. The SEC is not very popular right now, as it came out that they let evil Bernie Madoff settle his civil fraud suit without admitting guilt.
Other key highlights include:
- Stricter regulation of financial products - derivatives, futures, etc., something opposed by many banks and financial firms (wait people may know we are ripping them off?)
- Treasury Secretary (Tim G) will have to sign off on emergency loans - no free pass people, enough already!
- FDIC and Co. will be to wind down firms - are we actually trying to make things easier??
I am personally most heartened by the consumer watchdog agency - people will be better informed about scams like credit cards, mortgages and other products people who understand were using to rip off people who didn't.
I think this is a step in the right direction and let's hope it prevents another recession/crisis!
For more info: To learn more about the government's take on the reform, check out their blog
If you liked this article, please also look at: Build America Bonds or MA stimulus to see what else the government is doing to jump-start the economy.
Thanks for reading!
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