Thursday, April 22, 2010
President Obama's Vision for Financial Regulatory Reform
The White House released the transcript of President Obama's speech on financial reform in New York City today. In it the President set forth his vision of financial reform -- what he described as "a set of updated, commonsense rules to ensure accountability on Wall St. and to protect consumers in our financial system:"
- A way to protect the financial system and the broader economy in the event a large financial firm begins to fail, without taxpayer cost
- The Volcker rule, i.e., place limits on the size of banks and the kinds of risks they can take
- Transparency and regulation in the trading of derivatives
- A dedicated agency looking out for ordinary people in our financial system and providing them with clear and concise information about financial decisions
- More power to shareholders -- say on pay, SEC authority to give shareholders more say in corporate elections
The President also urged an end to "cynical politics" and for the industry to work with the administration on reforms.