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.