"New plan for Financial Regulation looks Burden for Financial institution?"

President Obama introduced his new plan for financial regulation. It will be sweeping regulation over financial industry since U.S recession in 1930s. Under his plan, the Federal Reserve can have more power over financial institutions whose failure can damage to financial system. Also, customer would more protected by new plan. So controlled financial institution will have hard time in short run, but will be more stable in long run which seems to president's plan.

Then, who will be opposite to new regulation?

probably, most financial institution would not happy about his new plan. Under federal bank's control and strong regulation, they will have more risk and less leverage, ultimately they will have less profit. For the time being, it would burden for financial institution while they were thinking that they could get out of financial crisis. But, it would make financial system more stable, can prevent future crisis. Since many of U.S financial institution system more stable, can prevent future crisis. Since many of U.S financial institution increased their profit by increase leverage which had high risk. As many of you realized from recent financial crisis, failing of financial institution will not only affect to themselves, but also will affect to whole financial system since they are too big and so interconnected to fail.

It looks like it will not take short-time to pass new plan. Many financial institutions will opposite president's new plan. However, many part of financial system should change. I am expecting this new plan passed as soon as possible so not only U.S overcome financial crisis, but also all over the world(include my country) can overcome financial crisis.


http://www.usatoday.com/money/companies/regulation/2009-06-17-obama-financial-reform-plan_N.htm

Gooyong Chung