Financial Reform in America New Foundation, Walls Intact

The Obama administration announced the most sweeping changes to America’s financial regulatory system in decades. In a white paper it proposed greater authority for the Federal Reserve, enabling the central bank to supervise all systemically important financial firms, supported by a multi-agency council; powers for the federal government to seize and dismantle large distressed companies; tougher rules on derivatives and securitisation; and a requirement for hedge funds to register with regulators. A new agency will be formed to bolster consumers’ rights. Congress will deliberate over the plans.