Obama Initiative Seeks Fix To Finance Regulations

Both measures face a blizzard of opposition from special interest groups, who fear the changes envisioned will cut into profits or impose undue complexities on their industries.

In a Tuesday television interview, Obama said the plan was "a very strong set of regulatory measures that we think can prevent this kind of crisis from happening again."

Christina Romer, the chairman of the White House Council of Economic Advisers, said Wednesday morning that the administration proposal strikes "the appropriate balance" and that it was "not bulldozing the whole system."

Rep. John Boehner, the Republican leader in the House of Representatives, countered by predicting "we'll have the federal government deciding what interest ought to be charged on credit cards, having the government decide what kind of financial products are available."

The financial sector and lawmakers from both parties agree that significant changes are need in rules that govern the intricate and interconnected world of banking and investment. But the details of Obama's proposal already are facing resistance.

Under Obama's plan, the Federal Reserve would gain power to supervise holding companies and large financial institutions considered so big that their failure could undermine the nation's financial system. But even as it gains new powers, the central bank would cede some banking authority to a new Consumer Financial Protection Agency.