We will know more Wednesday, but it looks like Obama will propose all financial institution be centrally run, by his team.

He also wished to be given the power to dissolve any company he thinks needs to be.

All hail King Obama.

http://money.cnn.com/2009/06/15/news/economy/market_reorganization/index.htm?postversion=2009061512

"The U.S. financial system is far less centralized than other mature economies, according to Geithner, pointing to the between 8,000 and 9,000 banks throughout the country. To hold a vast system accountable, he said that there has to be a more centralized regulation system."

"Another component of the plan, which 'will be available only in extraordinary circumstances,' according to Geithner and Summers, creates an option to dissolve financial companies that are too big to fail."

Oh, no.
Even as a republican, I thought Obama wouldn't do things this extreme. -_-

I'm sorry, I really have no desire to protect the consumer from their own inability to think. If they can't realize they will get screwed by a sub-prime loan, then let the house default, give it back, and move into an apartment. Call me whatever you want, but I believe in personal responsibility.

NEW YORK (CNNMoney.com) -- President Obama will release details on Wednesday of his proposed overhaul of how the government oversees banks and financial companies.

The aim is to patch holes in the country's complex system of financial regulation.

The system "was fundamentally too fragile and unstable and it did a bad job of protecting consumers and investors," said Treasury Secretary Tim Geithner, who spoke at a Time Warner (TWX, Fortune 500) summit on the economy. Time Warner is the parent of CNNMoney.com.

Geithner addressed the main objectives of the new regulatory system, although he was not willing to discuss specific details of the proposal prior to the official unveiling by Obama on Wednesday.
0:00 /4:31Geithner:'Too unstable, fragile'

The U.S. financial system is far less centralized than other mature economies, according to Geithner, pointing to the between 8,000 and 9,000 banks throughout the country. To hold a vast system accountable, he said that there has to be a more centralized regulation system.

"At the core of making the system stronger is to give one place clear accountability and responsibility," he said.

Focus on reform: In a commentary published in Monday's Washington Post, Geithner and the director of the National Economic Council, Lawrence Summers, said the proposal would grant the Federal Reserve increased power in the oversight and management of the largest financial companies in the market.

It would also create an agency like the Federal Deposit Insurance Corp., to oversee consumer-oriented financial products.

The two men wrote that the plan would point to the need for deeper cash reserves at major financial institutions. Those firms -- whose operations affect other, smaller institutions -- will be moderated by a consortium of Federal Reserve leaders.

In addition, the proposal intends to impose stricter reporting standards for asset-backed securities in an attempt to prevent a housing boom and subsequent bust like the one that catalyzed the current downturn, the two men wrote.

The housing collapse, fueled by the popularization of subprime mortgages, was evidence of weak consumer protection, Geithner and Summers wrote, adding that the proposal Obama will unveil Wednesday works to continue to protect consumers.

Another component of the plan, which "will be available only in extraordinary circumstances," according to Geithner and Summers, creates an option to dissolve financial companies that are too big to fail.

"It will help ensure that the government is no longer forced to choose between bailouts and financial collapse," they wrote.

The proposal will also pledge to lead a global overhaul in regulation.

One financial industry representative said he was on board with the reform agenda.

The five areas touched on "are widely recognized by the industry and other experts as issues that must be addressed," said Tim Ryan, president and CEO of the Securities Industry and Financial Markets Association, in a written statement.

"From a systemic supervisor to resolution of non-banks and other areas, we in the industry understand the urgent need for reform and are working to provide substantive and constructive solutions as the political process moves forward," added Ryan.

Proposal still has to face Congress: Obama's proposal would require congressional approval. Geithner is set to testify about the plan before Congress on Thursday.

The plan will meet with opposition from those opposed to giving the government a heavier hand in the financial marketplace.

While Geithner acknowledged the importance of competition to create innovation in a market economy, he was also unwavering in the defense of increased regulation.

"We are not going to go back to where it was -- we can't," he said Monday. "The damage of the crisis was just too acute."

Geithner said it is crucial to reform the regulatory system even before the economy is completely out of the current recession. "We are trying to move very, very quickly while the memory of the crisis is still in the forefront of people's memory," he said



...Doesn't seem as bad  when you read the whole article.

It's not like the idea is to have a socialised banking industry where what Obama says goes and he has 100% power over everything. He just wants a bit more control over the financial sector during the economic crisis. It wont destroy the country and it wont take away all your rights overnight.

If he was to set up a national bank and dissolve all the others, then that would be going too far.

I read it, and yes he made sound worse than what I actually read. But first off change that more control during crisis, to more control for as long as they can keep it. And second off, regulation by an outside source like the US government causes inefficiency. I work with the government first hand and know they are inefficient. When I go out to the test grounds they have enough people around that everyone has a backup incase someone else gets tired during a 12 hour shift. I have no backup, and the government won't pay for a backup for me, but they will for all the low level button pushers who are only allowed to push 1 button over and over again the entire night they are there. If I need a different button pushed, I have to call the other guy who is allowed to push that button. I'm sorry, but I don't have much trust in the government handling this very well either.

 it goes further than just people unable to think. It's all about us as a whole being greedy, people, corpoaration, the Government. Our inability to never be satisfied and to take advantage of everything and anyone has gotten us this far.

The government has had this power for years: all it has to do is revoke a corporation's charter. It's almost never actually used -more's the pity- but this wouldn't actually represent an increase in power.

"The Government" and the Executive Branch based on there discression are two completly diferent thing

The Government can not revoke Bank of America's charter without a shit storm of political mess, along with a fight all the way up to the supreme court. If what this sounds like passes, Obama and his team can revoke it with zero recourse.

Checks and balances have completely gone away haven't they.

since 2001 it seems.