The proposed financial regulatory reform offered by the Obama administration is, as might be expected, good and bad.
The good: requires greater capital requirements for the very large banks that pose systemic risk to our financial system. There are about 19 banks that fit into this category. Also good are some other aspects that put some of the same requirements on the large banks as currently being enforced on smaller banks.
The bad: Creation of new agencies which will do exactly what current agencies should be doing. Why not clean out the management of those existing agencies and require them to do what they should have been doing all along?
