June 17th, 2009
05:25 PM ET
5 years ago

Obama: 'A sweeping overhaul'

NEW YORK (CNNMoney.com) – President Obama on Wednesday unveiled his long-anticipated plan to restructure how banks and other firms are regulated in the hope of preventing another financial collapse.

The far-reaching effort would reorder the roles of some key agencies to try to tighten government supervision of the financial sector. It would also toughen up standards for big financial firms and create a new agency dedicated to consumer protection.

"We did not choose how this crisis began. But we do have a choice in the legacy this crisis leaves behind," Obama said. "So today, my administration is proposing a sweeping overhaul of the financial regulatory system, a transformation on a scale not seen since the reforms that followed the Great Depression."

On Thursday, Treasury Secretary Tim Geithner will head to Capitol Hill to detail the Obama proposals and answer questions. Most of the administration's plans will require legislation to gain force.

One of Obama's more drastic moves would be to abolish the embattled Office of Thrift Supervision and merge it with the Office of the Comptroller of the Currency.

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Filed under: President Obama
soundoff (24 Responses)
  1. Cindy from Ft. Worth, TX

    Well, I don't think that anyone should cheat on their spouse, but I don't think that he is the first...LOL...whether he is Democrat or Republican...and...I would not write a book about it either! I wouldn't go on TV shows telling all of the details. I don't think politicians are any different than the rest of the population when it comes to morals; they are simply human.

    June 17, 2009 05:42 pm at 5:42 pm |
  2. Zero.

    You have no bristle left to your Broom..

    June 17, 2009 05:45 pm at 5:45 pm |
  3. Mark,B'ham,Al.

    President Obama, you were part of the problem fighting regulation of Fannie Mae and Freddie Mac in 2005 since they were a big contributor to your campaign. This looks like more Bureaucrats to use smoke and mirrors to say they are protecting us but taking care of the same old special interest that got the economy in trouble in the first place and to cover the origional perpitrators behinds.

    June 17, 2009 05:50 pm at 5:50 pm |
  4. SLM

    Please help us, we can't afford anymore of Obamas overhauls. They are bankrupting this country. Who's watching over Geithner to make sure he pays his taxes??

    June 17, 2009 05:52 pm at 5:52 pm |
  5. Sniffit

    hahaha...think he might've chosen those words to bait the GOPers? I'm starting to think he's having a little fun with you guys while going about his business of doing what needs to be done.

    June 17, 2009 05:54 pm at 5:54 pm |
  6. phoenix86

    Barney Frank, Chris Dodd, Chuck Schumer, etc. All defended (and still defend) Fannie and Freddie. The politization of Wall Street lead to the financial meltdown.

    Enforce current regulations first, rather than create a new agency (with the associated spending needs) to create new rules.

    Amazing that Obama has never studied history!

    June 17, 2009 05:59 pm at 5:59 pm |
  7. Proud DHS radical

    And just where would the money to fund this new governmental bureaucracy of Obama's will come from?

    I guess he will ask Barny Frank and Chris Dodd to run the agency too.

    June 17, 2009 07:50 pm at 7:50 pm |
  8. Terry

    OK, Conservatives. Here is your chance. You are always complaining about how inefficient government is. Why don't you tell us how to fix it?

    And don't give us that lame crap about letting free enterprise do it. The gang of global corporations that you call "free" enterprise would run the deficit up to a $100 trillion in a year awarding each other contracts and bonuses.

    June 17, 2009 08:04 pm at 8:04 pm |
  9. LacrosseMom

    To the GOPers:

    The DE-regulation of Wall Street, banks, etc., started with the following.....

    The Financial Services Modernization Act of 1994, its author? None other than Phil Gram, yes, Phil Gram ...... McCain's long time friend & 2008 campaign economic advisor!

    During the years that the GOP controlled Congress more was done to DE-regulate than ever before! Look it up its part of ......... history!

    Y' all like to blame the Democrats but no...... it was the GOP!

    June 17, 2009 08:05 pm at 8:05 pm |
  10. bess

    BO's "baiting" GOP-ers? sure, that's what he does best 'cuz it sure isn't running a country that he blames for every problem in the world, and especially being fiscally responsible for America under his watch.

    June 17, 2009 08:15 pm at 8:15 pm |
  11. m smith

    seems like most of the negitive comments come from the southern states. I would guess they are all red. And we know where they rank in jobs education and health care.

    June 17, 2009 08:17 pm at 8:17 pm |
  12. Jay

    I agree with all of the proposals, except one.

    Having the Federal Reserve control U.S. companies would be a huge mistake.

    Why would anyone want to have foreign interests and a foreign-controlled entity full control over American companies and businesses? That represents a huge conflict of interest. Anyone other than the Federal Reserve, and we would be okay with it.

    June 17, 2009 08:27 pm at 8:27 pm |
  13. pat c

    thank you president obama for starting the clean up of the mess this country has been in for the last few years. i know you will do a great job and you have accomplished so much in your first 6 months, in spite of the republican nay sayers slapping you down with every turn you have made. you have shown such grace and strength and i for one am grateful to have you as our president.

    June 17, 2009 08:28 pm at 8:28 pm |
  14. Henry

    Oh, you poor Republicans. Snifit has it right. Obama got you all wound up tight.

    June 17, 2009 08:35 pm at 8:35 pm |
  15. mjm

    "We did not choose how this crisis began. But we do have a choice in the legacy this crisis leaves behind," Obama said

    No, you had a choice. You chose not to do anything about Freddie and Fannie when you had the opportunity.

    It's almost as if the democrats wanted an economic melt down so they could push their "hope and change" agenda.

    June 17, 2009 08:49 pm at 8:49 pm |
  16. annie against biased news

    The only thing needing sweeping reform is obama and his tax evading cabinet and all his czars.

    June 17, 2009 08:53 pm at 8:53 pm |
  17. Chad

    What is wrong with making sure this meltdown ever happens again? How many times do you reps need to burn your hand before you realize the pot is hot!!

    June 17, 2009 09:08 pm at 9:08 pm |
  18. we do have a choice in the legacy this crisis leaves behind

    DO NOT let business police themselves

    that is obvious

    left to their own decision making with out checks and balances they screw America and pay themselves 100 times what they are worth

    business CANNOT be trusted with out government oversite

    June 17, 2009 09:10 pm at 9:10 pm |
  19. DL

    @SLM

    We are allready bankrupt if you haven't noticed because to many people took advantage of there NOT being regulations, so we fix it or let it happen again with the same people using the same tactics and benefiting again at the expense of the rest of us. Let the man do what he needs to do to fix this mess.

    June 17, 2009 09:18 pm at 9:18 pm |
  20. Dennis

    I find it amazing to read some of the inane policitical comments from people who have no idea about how really this financial mess came about. For them to truly believe we don't need a massive overhaul of the regulatory machine would lead me to believe they must be part of the corrupt greedly crowd who engineered this train wreck.

    Derviatives need to be strictly and tightly regulated. If there are those who feel this should not happen, than perhaps we should lobby to eliminate derviatives.

    June 17, 2009 09:28 pm at 9:28 pm |
  21. Right Leaning Independent

    We Americans from "Main Street" had no choice in the decision to spend the massive amount of our money that you have spent Obama but your legacy is still going to be a massive deficit handed down to our children thanks to you pushing through your politcal payoffs in the form of bailouts and stimulus programs!!! I can not wait to hear the next President speak about what he has inherited from your administration because as thin skinned as you are, I expect to hear a lot whining justification coming you...

    June 17, 2009 09:44 pm at 9:44 pm |
  22. Reggie

    Big surprise! Obama is trying to take more control of banks and other public sectors. His 4 years could be some of the most damaging ever.

    June 17, 2009 09:58 pm at 9:58 pm |
  23. Change does not come overnight.

    What is going on with banks and wall street is out of control. Even though we Americans are tired of the details, thank goodness SOMEBODY is working towards making sure the collapse doesn't happen again.

    Would you rather nothing is done? I wouldn't.

    June 17, 2009 10:11 pm at 10:11 pm |
  24. Dee, 1 Vote

    GOP voter's, 0+8 yr= 0 (Jr/Cheney). Time and action is what the Obama Admin is doing.

    June 17, 2009 11:35 pm at 11:35 pm |