Financial Oversight is Broken | Obama Proposes Fix

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Why has America’s economy gone down the tubes? Why is it taking so long for it to crawl its way up and out of the porcelain bowl? There are many ways to answer these questions, but most will tell you that a lack of oversight and unwise risk taking have played key roles in the brush fire. Individuals can monitor their finances during tough times with a little bit of help from fast cash payday loans, but on the corporate and government levels, something bigger is needed.

That’s why President Obama is set to unveil “sweeping overhaul” of financial oversight in America. He thinks it’s high time a broken system was made right.

“A failure of a system”

Robert Schmidt reports for Bloomberg that Obama has said his plan to “refashion supervision of the U.S. financial system” is necessary to close gaping holes in the way oversight and risk taking have been managed. His proposal is considered “the biggest overhaul of market rules in more than seven decades,” writes Schmidt. Just one of many significant elements of the change would include a new regulatory board specifically for the biggest companies in America. Obama’s plan also includes the creation of an agency for monitoring consumer financial products, nominating the Federal Reserve as the watchman of companies who “are too big to fail” and a federal group to monitor private equity funds more tightly.

“This was a failure of the entire system,” Obama said. “An absence of oversight engendered systematic, and systemic, abuse.” ... click here to read the rest of the article titled "Financial Oversight is Broken | Obama Proposes Fix"