Administration unveils financial system overhaul

[ProSense]

Administration unveils financial system overhaul

By MARTIN CRUTSINGER, AP Economics Writer

WASHINGTON – The Obama administration on Thursday unveiled a sweeping overhaul of the financial system designed to impose greater regulation on major players like hedge funds.

Treasury Secretary Timothy Geithner told lawmakers that the changes are needed to fix the flaws exposed by the current financial crisis, the worst to hit the country in seven decades.

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The administration's proposal, which will require congressional approval, would represent a major expansion of federal authority over the financial system. Highlights of the plan include:

• Imposing tougher standards on financial institutions judged to be so big that their failure would represent a risk to the entire system.

• Extending federal regulations for the first time to all trading in financial derivatives, exotic financial instruments such as credit default swaps that were blamed for much of the damage in the meltdown.

• Requiring hedge funds and other private pools of capital, including private equity funds and venture capital funds, to register with the Securities and Exchange Commission if their assets exceed a certain size. The threshold amount has yet to be determined.

• Creating a systemic risk regulator to monitor the biggest institutions. Geithner did not designate where such authority should reside, but the administration is expected to support awarding this power to the Federal Reserve.

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The House committee, chaired by Rep. Barney Frank, D-Mass., has indicated it could move on the measure as early as next week.

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While many Democratic lawmakers expressed support for Geithner's proposals, Republicans questioned whether the overhaul would give federal regulators too much power.

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[FrenchieCat]

1. But, but, but this has nothing to do with legalizing Pot to improve the Economy!!

This cannot be a topic if interest! :sarcasm:

Geithner is looking better, I think!

[Andy823]

2. This is the right time for this.

The public is furious, and it's not just the democrats, but republicans, independents, and everyone else! Look what happened with the 90% tax thing. A lot of republicans first voted no, then changed to yes because the people back home were angry as hell! Right now is a great time to push this through for the same reasons, the people will let their congress person know they are mad, and the politicians will have to vote yes or no, and those up for re-election in 2010 will have to face those people when they want their votes!

I think the republicans will complain, like they always do, but I really think this is going to get a wide support of the people, and that will help it get passed. Anyone who can't see that we need more regulation on this issue is an idiot!

[redqueen]

3. Wow... Republicans are still whining about regulations?

Suits me. I'm quite happy to see them out of power for a generation or more, and this kind of nonsense sure doesn't help them.

[ProSense]

5. Let them whine. n/t

[SemiCharmedQuark]

6. Yahoo is already spamming the front page with the numerous reservations Republicans have about more

regulations.

[backscatter712]

4. STOP THE PRESSES!!! GEITHNER DOES SOMETHING RIGHT!!!

Finally! Some real regulation to bring the Gordon Gekkos under control!

[Kdillard]

7. This is the important thing. I was watching the testimony of Geithner and Mary Shapiro

on CSPAN last night. I liked alot of what they had to say but i am waiting to hear more details. Seriously this is what we should be discussing not pot or some imagined outraged.

[annabanana]

8. I kind of like that there is good solid work being done

under the circus on the surface.

The inability of corpomedia to talk about more than ONE aspect of anything is working to Obama's multitasking strengths..

[CTLawGuy]

9. This totally PROVES that Obama/Geitner is in bed with Wall St.

:eyes: