Obama calls for new 'rules of road'

06-18-2009 | AFP

The proposed legislation would protect Americans from future crisis

Panama Star The president's broad set of changes in financial regulation would give the Federal Reserve new authority and create a new agency to protect consumers in their banking transactions.

Obama said Wednesday that an absence of oversight over Wall Street resulted in systematic and systemic abuse that increased financial risks for both families and large firms. He said his plan is the biggest transformation in financial rules since the Great Depression. The plan will now be considered by Congress.

The Obama plan would give new powers to the Federal Reserve to oversee the entire financial system and would also create a new consumer protection agency to guard against credit and other abuses that played a big role in the current crisis.

Obama said the plan was designed in consultation with lawmakers and regulators.