host.....do you think Obama's 6 point plan to "establish a 21st century regulatory system" is a step in the right direction to address part of the problem?
Quote:
From a recent speech in NYC * First, if you can borrow from the government, you should be subject to government oversight and supervision. (So, if the Fed steps in and gives a loan to an institution, a la JP Morgan-Bear Stearns, then the Fed should be make liquidity and capital requirements.)
* Second, there needs to be general reform of the requirements to which all regulated financial institutions are subjected.
* Third, we need to streamline a framework of overlapping and competing regulatory agencies. (There are some cases where institutions don't fit into the existing framework, and therefore, aren't regulated.)
* Fourth, we need to regulate institutions for what they do, not what they are.
* Fifth, we must remain vigilant and crack down on trading activity that crosses the line to market manipulation. (A reference to traders who spread rumors about Bear Stearns to hedge bets against them.)
* Sixth, we need a process that identifies systemic risks to the financial system. (Obama suggests creating a "financial market oversight commission" that would meet with the President, Congress, and regulators regularly.) Details in the plan for transparency and oversight of the financial system - Modernizing the Financial Regulatory System (pdf)
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Granted, more details are needed...but that could come with input from a broader group of experts (as he proposed in the speech) than those within his inner circle who crafted this general proposal.
I dont know how you get comprehensive reform more quickly than that. You cant just impose it from above and expect to have wide spread support.