A new consumer protection agency highlights a financial system overhaul President Barack Obama plans to unveil Wednesday in effort to avert future
economic crises like the one still wreaking havoc at home and around the globe.
Obama's sweeping change of business regulation also embraces new powers for the Federal Reserve and new rules that would reach into currently
unregulated regions of the financial markets. An 85-page draft details an effort to change a regime that Obama's economic team maintained had become
too porous for the innovations and intricacies of the today's financial markets.
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Under Obama's plan, the Fed would gain power to supervise holding companies and large financial institutions considered so big that their failure
could undermine the nation's financial system. But even as it gains new powers, the Fed also would lose some banking authority to a new Consumer
Financial Protection Agency.
Obama's proposal would require the Fed, which now can independently use emergency powers to bail out failing banks, to first obtain Treasury approval
before extending credit to institutions in "unusual and exigent circumstances."
www.chron.com...
news.yahoo.com...
Wow, more and more President Obama is changing the nation in what could very well be an irreversible change in powers.
Meanwhile giving the Feds new powers to "supervise holding companies, and large financial institutions, some banking powers which once were delegated
to the Feds will now be given to a new Consumer Financial Protection Agency", which of course would awnser to President Obama.
So the Feds, who started this whole mess, will be given more powers, and of course President Obama and his administration also now have more
powers.
[edited to add links]
[edit on 17-6-2009 by ElectricUniverse]
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