Obama Set to Announce Wall Street Regulatory Overhaul

In an effort to prevent some of the events that led to the financial crisis in the future, the White House will unveil a sweeping overhaul of the nation's financial regulatory system tomorrow. Suck it Wall Street!

Reports the Washington Post:


The administration's plan leans heavily on the Fed, expanding its role as the regulator of the nation's largest banks such as J.P. Morgan Chase and Goldman Sachs to include other giant financial firms, such as the insurance companies American International Group and MetLife. The agency, which has greater independence from the political process than other regulators, would have broad authority to impose special requirements on those companies, such as mandating that they set aside a larger percentage of their assets against possible losses than smaller firms. Such a requirement could limit large companies' appetite for risk, but also their profit and growth.

A second element likely to provoke fierce debate is the establishment of a Consumer Financial Protection Agency.



In the already famous fly-swatting interview from earlier today, Obama explained that these efforts mirror some of the steps taken after the Great Depression to prevent further economic catastrophes, many of which were repealed during the deregulation frenzy in the late nineties and early aughts.

So yes, new rules for Wall Street! Or, as some conservative talking heads will call it—Communism! We have a hunch that the market will be tanking tomorrow.

Financial Regulatory Overhaul is Detailed [Washington Post]