Obama Initiative Seeks Fix To Finance Regulations

STEVEN R. HURST

WASHINGTON (AP) — President Barack Obama unveils a plan Wednesday that aims to clamp down on freewheeling financial institutions and protect Americans who take loans to buy homes or use credit cards.

The revamping of the regulatory structure for the U.S. financial industry has been designed to prevent a repeat of the crisis that began in the domestic mortgage business and has cascaded, damaging economies around the globe.

The Obama plan recommends increased powers for the Federal Reserve, which is the U.S. central bank, and the creation of a new agency to protect consumers in the credit market. Obama also wants new rules to govern portions of the financial system that now go without oversight.

An 85-page draft of the administration's plan details an effort to change a regulatory regime that Obama's economic team says was unable to cope with burgeoning new credit products and the increasing complexities of the marketplace.

Obama wants Congress to make the plan law by the end of the year, an ambitious goal given that he also is pushing lawmakers to overhaul the nation's health care system by October.