Obama proposes government expansion into business sector
From Sunshine Review
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June 17, 2009 President Obama will propose today that would give the government potential control of failing businesses as well as those in the banking sector in an effort avoid a repeat of last fall's economic crisis.
[edit] Private sector and banking sector together
Obama is expected to announce the proposal at the White House today, expanding the current governmental hold on the banking sector in order to monitor and take over those that fall into trouble, as the executive and legislative branches define.
"We are going to put forward a very strong set of regulatory measures that we think can prevent this kind of crisis from happening again," Obama said Tuesday, the Los Angeles Times reported.[1]
[edit] Financial services oversight council
The proposal calls for creation of a Financial Services Oversight Council led by the Secretary of the Treasury, that would tighten gaps in the process and identify emerging risks. These companies setting off red flags, according to the Financial Services Oversight Council, would be subject to Federal Reserve intervention, emulating regulation of the insolvent banks over the last few months.
The administration aims to pass this legislation quickly, with Congress' approval, to take advantage of the momentum for change and to avoid losing inter-regulator battles that would slow the process for such change.
Obama will present his proposals at 12:50 p.m. EST.[2]
