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Obama Blueprint Deepens Federal Role in Markets
Overhaul of Financial Regulation Focuses on Consumer Protection, Risk
By Binyamin Appelbaum and David Cho
Washington Post Staff Writers
Wednesday, June 17, 2009
The Obama administration last night detailed a series of proposals to involve the government more deeply in private markets, from helping to steer borrowers into affordable mortgage loans to imposing new limits on the largest financial companies, in a sweeping effort to curb the kinds of reckless risk-taking that sparked the economic crisis.
The plan seeks to overhaul the nation's outdated system of financial regulations. Senior officials debated using a bulldozer to clear the way for fundamental reforms, but decided instead to build within the shell of the existing system, offering what amounts to an architect's blueprint for modernizing a creaky old building.
The White House makes its case for this approach in an 85-page white paper that describes the roots of the crisis. Gaps in regulation allowed companies to make loans many borrowers could not afford. Funding came from new kinds of investments that were poorly understood by regulators. Big firms paid employees massive bonuses, while setting aside little money to absorb potential losses.
"While this crisis had many causes, it is clear now that the government could have done more to prevent many of these problems from growing out of control and threatening the stability of our financial system," the white paper says.
The plan is built around five key points, according to a briefing last night by senior administration officials and a copy of the white paper obtained by The Washington Post.
The proposals would greatly increase the power of the Federal Reserve, creating stronger and more consistent oversight of the largest financial firms.
It also asks Congress to authorize the government for the first time to dismantle large firms that fall into trouble, avoiding a chaotic collapse that could disrupt the economy.
Federal oversight would be extended to dark corners of the financial markets, imposing new rules on trading in complex derivatives and securities built from mortgage loans.
The government would create a new agency to protect consumers of mortgages, credit cards and other financial products.
And the administration would increase its coordination with other nations to prevent businesses from migrating to less regulated venues.....
This is going to be a startling revelation to ya but there was an election last fall. Most americans voted for and expect Obama to make changes. Go figure?
You act like you didn't get the memo.
This is going to be a startling revelation to ya but there was an election last fall. Most americans voted for and expect Obama to make changes. Go figure?
You act like you didn't get the memo.
DUMB ASS, we have a Constitution. Please be so kind as to point out WHERE in it, the Government has this POWER?
This is going to be a startling revelation to ya but there was an election last fall. Most americans voted for and expect Obama to make changes. Go figure?
You act like you didn't get the memo.
DUMB ASS, we have a Constitution. Please be so kind as to point out WHERE in it, the Government has this POWER?
Bush set the president. If you can't substantiate your complaint during that time period then your discent is hollow.
Obama should have all the tools to repair what Bush used to destroy our country.
Oh ya I'm the dumb ass.
Let's compare accomplishments some time...that is if you have any?
Seems the mantra is working...
Seems the mantra is working...
funny how you didn't worry about government when it was about warrantless wiretapping but get all up in arms when it's about trying to prevent another meltdown.
Seems the mantra is working...
funny how you didn't worry about government when it was about warrantless wiretapping but get all up in arms when it's about trying to prevent another meltdown.
Seems the mantra is working...
funny how you didn't worry about government when it was about warrantless wiretapping but get all up in arms when it's about trying to prevent another meltdown.
This is going to be a startling revelation to ya but there was an election last fall. Most americans voted for and expect Obama to make changes. Go figure?
You act like you didn't get the memo.
This is going to be a startling revelation to ya but there was an election last fall. Most americans voted for and expect Obama to make changes. Go figure?
You act like you didn't get the memo.
