President Obama is enforcing tougher regulation and an overhaul of our financial institutions we have not seen since the Great Depression. KTRH’s Joe Gomez joins us live to talk to us about what the experts are saying about this plan.
Joe: The President unveiled his latest plan to save the world yesterday and it would give the Federal Reserve the authority to police all financial institutions weather they are a bank or not.
President Obama: Millions of Americans who have worked hard and behaved responsibly have seen their life dreams eroded by the irresponsibility of others and by the failure of their government to provide adequate oversight.
Joe: President Obama says the oversight is needed to ensure another credit bubble or economic meltdown does not occur again in the future.
Rob: Knock on wood heaven forbid should there be another crisis there is a legal mechanism to dissolve a large global financial services entity in a very balanced, thoughtful, slow and deliberate way so that it doesn’t cause a ripple effect of harm throughout the rest of our economy.
Joe: That is Rob Nichols President of the Financial Services Forum which represents the top financial institutions in the country. He says the most important thing in this push for financial regulation is to protect you and I the consumer from the flames of another break in the system.
Rob: What is a very important piece here is to keep exposure to the US taxpayer to a minimum and if the legal and regulatory tools are updated that is one thing that we can achieve.
Joe: Nichols says that there are some negative impacts to this overhaul that the president is proposing. Heightened regulation can lead to some institutions heading overseas but JP that is depending on what amendments the House and the Senate are willing to add.