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Obama Proposes More Powerful Fed

By Harry Kimball, Newser Staff

Posted Jun 17, 2009 1:21 PM CDT

(Newser) – President Obama today proposed broad new powers for the Federal Reserve and the creation of new national regulator to ensure against another financial crisis, the Wall Street Journal reports. Under the new plan, the Fed would oversee all components of any banking concern, even its foreign affiliates, and Treasury would have the power to take over and restructure any company. Obama called it a “sweeping overhaul.”

Obama proposed dismantling the Office of Thrift Supervision in favor of a more centralized regulatory approach that would be harder to sneak around. He also wants hedge funds to register with the Securities and Exchange Commission, and proposes a catchall council to “tackle issues that don't fit neatly in an organizational chart.” The plan as written, with its generous increase in federal powers, is likely to face stiff opposition in Congress.

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President Barack Obama concludes his remarks on the new comprehensive regulatory reform plan. (AP Photo)

President Barack Obama delivers remarks on the new comprehensive regulatory reform plan. (AP Photo)

The Federal Reserve building. (AP Photo)

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We are called upon to recognize that the free market is the most powerful generative force for our prosperity—but it is not a free license to ignore the consequences of our actions. - President Obama

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COMMENTS

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Showing 3 of 7 comments

justme

Jun 18, 2009 12:42 PM CDT

The Fed is one of the few federal agencies that actually has business people involved in making its business decisions. A much better arrangement than having politicians making business decisions like so many other federal agencies.

Snowleopard

Jun 18, 2009 9:59 AM CDT

yes, I realize that, but right now they can borrow money at next to nothing, and then they turn around loan that money out at 5%. I wish I was in that business. btw, when did you get a loan for 3.2%?

Snowleopard

Jun 17, 2009 10:37 AM CDT

I do think that the system as it is currently structured benefits the investor class that has access to credit much more than it does the working class. How come banks can borrow money at close to zero percent but the working man can't borrow lower than 5%? Doesn't it give them an unfair advantage?

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Politics • Money • US

Federal Reserve • SEC • Treasury Department • Office of Thrift Supervision • bank regulation • Obama administration • President Obama • Securities and Exchange Commission

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