06.17.09 - “The President’s plan is a giant step in the right direction. It ends the era of total chaos and the lack of coherent regulation – and outlines a roadmap to establish meaningful transparency and accountability. The President is proposing new regulation of the over-the-counter derivatives and swaps markets, and new authority for the Federal Reserve. His plan will require that credit default swaps are cleared and will impose position limits for swaps. It also implements new regulatory checks and balances for mortgage-backed securities, over-the-counter derivative contracts, and other exotic financial instruments in order to rein in unscrupulous traders. It gives the Federal Reserve the tools needed to reduce the systemic risk posed by large firms deemed ‘too big to fail.’ It makes a greater commitment to international reforms. And it establishes a new financial consumer protection agency to help safeguard hardworking Americans with mortgages, credit cards, and other loans.

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