WASHINGTON (CNN) – President Barack Obama will propose new regulatory controls for financial markets Wednesday, but says he isn't seeking to add a "whole host" of new agencies.
In remarks at a joint news conference Tuesday with South Korean President Lee Myung-bak, Obama said his goal is to update a regulatory system that has been relatively unchanged since the 1930s.
"I expect that Congress will work swiftly to get these laws in place," Obama said. "I want to sign them and get them up and running."
Regulatory gaps and a lack of oversight led to "wild risk-taking" that precipitated the U.S. economic crisis, imperiling financial institutions and the United States and global economies, Obama said.
"We have to make sure we have an updated regulatory system," he said, but added he would not be seeking "a whole host of regulatory agencies."
A new system would be streamlined with overlapping coverage "so that you don't see people falling through the gaps," the president said.
He warned against unspecified special interest groups that would oppose his changes because they want to "keep on taking these risks and expect the government to bail them out."
In a commentary published in Monday's Washington Post, Treasury Secretary Tim Geithner and the director of the National Economic Council, Lawrence Summers, said Obama's proposal would grant the Federal Reserve increased power in the oversight and management of the largest financial companies in the market.
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.