The Department of the Treasury Announces A New Foundation for Financial Regulatory Reform
On June 17, 2009, President Obama and Treasury Secretary Geithner unveiled the Department of the Treasury's proposed set of sweeping financial regulatory reforms. Billed as a "new foundation" for the U.S. and world economies to build upon going forward, the reforms have five stated objectives:
- promote robust supervision and regulation of financial firms;
- establish comprehensive regulation of the financial markets;
- protect consumers and investors from financial abuse;
- provide the government with the tools it needs to manage financial crises;
- and raise international regulatory standards and improve international cooperation.
The reforms come in response to what Treasury describes as "the most severe financial crisis since the Great Depression." Below is a brief summary of certain significant elements of the proposal.