Obama Initiative Seeks Fix To Finance Regulations

The new regulator would have the power to demand that customers have the option of simple financial products, to impose fines and to allow states to pass laws that are stricter than the federal standards.

Consumer protections are now spread among various state and federal authorities, including the Federal Reserve, the Securities and Exchange Commission, the Federal Trade Commission and a variety of banking regulators.

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Associated Press writers Jim Kuhnhenn, Anne Flaherty, Dan Wagner and Jeannine Aversa contributed to this report.