Originally published by the Voice of America (www.voanews.com).
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June 17, 2009

Obama Urges Overhaul of Financial Regulation
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http://enews.voanews.com/t?ctl=24D1A3C:A6F02AD83191E1609DB5C5E579A1934A5C6F54A6CF9DC2CA&
 
President Obama calls for creation of council of regulators to monitor
risk across entire financial system 
U.S. President Barack Obama said a flawed regulatory system was a major
reason for the financial meltdown, and he is proposing sweeping changes
to the rules and institutions that oversee the system. President Barack
Obama delivers remarks on a new regulatory reform plan, 17 Jun 2009, at
the White House He used a Washington speech Wednesday to outline reforms
he said will end gaps and overlaps in regulations. For example, new
rules would require regulators to watch over the soundness of the entire
financial system, not just individual financial institutions. The
president said the lack of comprehensive oversight is why the failure of
one major financial firm could threaten other companies. Mr. Obama said
the U.S. central bank, the Federal Reserve, should get more power to
regulate large banks and other large firms that could damage the economy
if they were to collapse. Companies that could pose a risk to the entire
financial system would be required to keep more money on!
  hand to cover potential losses on investments. He is calling for
creation of a council of regulators that also would monitor all kinds of
risks across the financial system. The president also called for
regulators to have expanded powers to take over large, failing financial
institutions, reorganize them and sell their assets to other firms.
Without these powers, Washington has had no choice but to bail out huge
financial firms on the verge of collapse. Mr. Obama wants to create a
Consumer Financial Protection Agency that would regulate mortgages,
credit cards and other products, and make sure customers can understand
the terms of such deals before they sign agreements.

Some information for this report was provided by AFP, AP and Reuters.


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