Obama to propose strict new regulation of financial industry

The Obama administration this week will propose the most significant new regulation of the financial industry since the Great Depression, including a new watchdog agency to look out for consumers’ interests.

Under the plan, expected to be released Wednesday, the government would have new powers to seize key companies — such as insurance giant American International Group Inc. — whose failure jeopardizes the financial system. Currently, the government’s authority to seize companies is mostly limited to banks.

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Posted in * Culture-Watch, * Economics, Politics, Economy, Law & Legal Issues, Office of the President, Politics in General, President Barack Obama, Stock Market, The Banking System/Sector

13 comments on “Obama to propose strict new regulation of financial industry

  1. The_Archer_of_the_Forest says:

    Seizing private companies.

    Hmmm…yeah, I think Hugo Chavez has tried that and its worked so well for the economy of Venezuela.

  2. John Wilkins says:

    Should a company have enough power to take over the USA and destroy the economy? Should they be able to risk other people’s money for the profit of a few managers at the top?

    The body seems reasonable, and good for those capitalists who play by the rules.

  3. DonGander says:

    “the government would have new powers to seize key companies”

    Our government is on the way to failure – who will sieze it?

    Don

  4. Chris says:

    from the party that gave us lax oversight with Freddie Mac/Fannie Mae which precipitated the housing meltdown: I’m sorry, they can’t be trusted. Ever.

  5. Jeffersonian says:

    [blockquote]Should a company have enough power to take over the USA and destroy the economy?[/blockquote]

    [b]Rex Kramer:[/b] Do you know what it’s like to fall in the mud and get kicked… in the head… with an iron boot? Of course you don’t, no one does. It never happens. Sorry, Ted, that’s a dumb question… [url=http://www.imdb.com/title/tt0080339/quotes]skip that.[/url]

  6. Helen says:

    I for one do not want to stand by and watch this happen. What will I tell my children and grandchildren when they ask, “What did you do to stop it?” Please keep us informed on the progress of this proposal so we can write to our elected officials.

  7. Matthew A (formerly mousestalker) says:

    I think we should employ the exact standards for financial companies that Obama employs for firing inspector generals. All that openness could only be a help, right?

  8. Dave B says:

    Great post mouse stalker, Obama also violated the law in firing the IG. Obama was supposed to give 30 days notice to congress. If Obama can’t follow the law should he then get new powers over corperations and be allowed to regulate them when he is firing existing government regulators illegally?

  9. Chris says:

    #8, “The One” don’t need no stinkin’ laws, haven’t you read the NYT? The instructions are all there….

  10. Dave B says:

    SEC was warned about Madoff ten years ago and ignored the warning, Bush warned Congress 17 times about Freddie and Fanny in 2008 and was ignored, McCain also issued warnings about Fannie and Freddie. Now we have Walpin, an IG inspector for Americore being ignored and fired. Yep, seems like we need more regulators and regulations, or may just hearing aids for the regulators we have!

  11. gdb in central Texas says:

    John,
    The financial crisis of 2008 was created by the capitalists conforming to the rules foisted on them by the government. CRA and community activists strongarming financial entities caused the market distortions.
    Some day, after Obama has finaished destroying the country, some Chinese or Indian historian will write a definitive history. No one in the current media has the integrity to reveal the emperors lack of clothing.

  12. libraryjim says:

    little girl: Grandma, do all fairy tales begin with ‘Once upon a time…’?
    Grandma: oh, no, honey. Some begin with ‘if elected I promise ….’!

    Grimms fairy tale beginning: “we’re from the Government, and we are here to help you.”

    Despair.dot com poster:
    If you think the problem is bad, wait until you see the Government’s solution!

  13. Nikolaus says:

    I had a really good response in the making when the power went out! Fooey! But gdb in C Texas has it right. Banks don’t even breathe without regulatory permission. Some of the larger banks actually host permanent regulatory presence in their corporate offices. BofA and Citi did not grow to their present state in a vacuum. Every acquisition is scrutinized (supposedly) and approved [b]by the government[/b].

    IMO regulation has grown like a tumor to the point of diminishing returns. Meltdowns such as 1929 have been avoided up to now, but the government regulators are intimately complicit in the current state of affairs. I can assure you that more regulation is NOT the answer especially at the hands of the current POTUS (that would be Punk of the United States).