Obama Lays Out Principles Of New Financial Regulation
UPDATED WITH DETAILS OF PRINCIPLES:
President Obama just outlined the type of financial regulatory environment he'd like to see when the nation emerges from the current economic crisis, following a meeting with Treasury Secretary Tim Geithner on regulatory reform.
It is a multi-point plan that laid some of the blame for the current crisis at the feet of deregulation and poor regulatory oversight. They include consumer protection, executive accountability and further transparency.
A summary of his six points, The Post's Anne Kornblut reports:
1. Very big financial institutions that could bring the entire system, like AIG, should be subject to "serious oversight."
2. The regulatory system must be strong enough to withstand "system-wide stress and the failure of one or more large institutions."
3. Government just "redouble" efforts to promote transparency and plain language in financial system.
4. Stronger regulation of products aimed at consumers is needed. "And we should base this oversight not on abstract models created by the institutions themselves, but on actual data on how actual people make financial decisions," Obama said.
5. "Executives who violate public trust must be held accountable," he said.
6. Regulation must be "comprehensive and free of gaps."
7. The U.S. must press for tougher regulation of foreign markets, as well.
“Let me be clear: the choice we face is not between an oppressive government-run economy and a chaotic and unforgiving capitalism,” Obama said. “Rather, strong financial markets require clear rules of the road, not to hinder financial institutions, but to protect consumers and investors.”
Obama wants Congress to work on regulatory reform before April's meeting of the finance ministers of the world's 20 major economies.
February 25, 2009; 5:33 PM ET
Categories: The Ticker | Tags: Geithner, Obama, SEC, regulation
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