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President Barack Obama is expected Wednesday to propose a sweeping reorganization of financial-market supervision, including remaking the powers of the Federal Reserve
Obama would call for allowing the Fed to oversee the biggest financial players and to give the government the power to unwind and break up systemically important companies.
Do you think this is his way of trying to counter HR1207 and HR2424? HR1207 is Ron Pauls "Federal Reserve Transparency Act of 2009" HR2424 is Dennis Kucinichs "Federal Reserve Credit Facility Review Act of 2009"
June 15 (Bloomberg) -- The Obama administration is set to propose new rules for asset-backed securities, including requiring trades to be reported on an electronic database, a U.S. Treasury spokesman said.
The plan, to be unveiled June 17 as part of the administration’s overhaul of financial regulation, will also require originators to retain 5 percent of the credit risk on loans they package into securities, Treasury spokesman Andrew Williams said today. Issuers of the securities will also be subject to additional disclosure in public filings, including revealing loan-level data, he said.
Asset-backed securities comprised of mortgages and other loans helped fuel the credit crisis by encouraging banks to lower lending standards. Treasury Secretary Timothy Geithner, speaking earlier today in New York, said the administration’s plan will aim to fill gaps in oversight, require more disclosure and realign incentives so they don’t favor excessive risk.
The proposed asset-backed rules will also call for fees and commissions received by loan brokers and officers to be paid over time. The payments will be reduced if a loan isn’t repaid because of poor underwriting standards, Williams said.