Obama calls for more bank supervision

A "patchwork of regulators" are "unable or unwilling" to protect the American people, said Sen. Barack Obama.
MAR 27, 2008
By  Bloomberg
Democratic presidential candidate Barack Obama called for an overhaul of regulations governing banks and other financial institutions following the collapse of the subprime mortgage market. In his speech today at New York’s Cooper Union, Sen. Obama, D-Ill., proposed giving the Federal Reserve greater supervisory authority when it acts as a "lender of last resort," adding that a "patchwork of regulators” were “unable or unwilling" to protect the American people when the subprime mortgage crisis took a "reckless and unsustainable turn." He called for stronger liquidity capital requirements for financial companies and said that government regulations governing Wall Street firms had to be changed to so that agencies didn't compete against each other. ``Under Republican and Democratic administrations, we failed to guard against practices that all too often rewarded financial manipulation instead of productivity and sound business practices,'' said Mr. Obama. ``We let the special interests put their thumbs on the economic scales.'' "The result has been a distorted market that creates bubbles instead of steady, sustainable growth; a market that favors Wall Street over Main Street, but ends up hurting both," he added. Mr. Obama also proposed a stimulus that will provide immediate relief to areas hardest hit by the housing crisis, and a significant extension of unemployment insurance for those who are out of work. "If we can extend a hand to banks on Wall Street, we can extend a hand to Americans who are struggling," Mr. Obama said. Presidential candidates Sen. Hillary Clinton, D-N.Y., and Sen. McCain, R-Ariz., have also called for changes in mortgage lending practices, according to MarketWatch. Ms. Clinton called for extending $30 billion to help states fight foreclosures. Mr. McCain wants mortgage lenders to step in and help cash-strapped but creditworthy borrowers with their loans.

Latest News

Fintech bytes: Vestwell comes through for underserved savers with multilingual support
Fintech bytes: Vestwell comes through for underserved savers with multilingual support

MyVest and Vestmark have also unveiled strategic partnerships aimed at helping advisors and RIAs bring personalization to more clients.

UBS profit beats estimates as Ermotti sees brighter outlook
UBS profit beats estimates as Ermotti sees brighter outlook

Wealth management unit sees inflows of $23 billion.

Evercore to buy advisory firm Robey Warshaw for $196 million
Evercore to buy advisory firm Robey Warshaw for $196 million

Deal will give US investment bank a foothold in lucrative European market.

Gates and Buffett’s Giving Pledge is 15 years old, but many signatories are richer than ever
Gates and Buffett’s Giving Pledge is 15 years old, but many signatories are richer than ever

New report examines the impact that the initiative has had on philanthropy.

Americans stay the course on 401(k) savings despite inflation fears
Americans stay the course on 401(k) savings despite inflation fears

Few feel confident that they will meet their retirement goals.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.