U.S. to Toughen Finance Rules

By DAMIAN PALETTA, Wall Street Journal

The Obama administration, moving with increasing speed, has inked the main contours of its plan to revamp financial-market oversight -- changes that will ripple through the economy, affecting everything from the operations of international banks to consumer protection.
The principles include giving the Federal Reserve new powers that include authority to monitor and address broad risks across the economy, say people familiar with the matter. The proposals are expected to include tougher capital requirements for big banks and authority for regulators to take over a large financial firm that is failing.

Proposed Changes
Treasury Secretary Timothy Geithner will soon outline proposed changes in financial regulation. They are expected to include:
An enhanced role for the Federal Reserve to monitor and address broad economic risks.
Changes to the way banks are overseen to prevent lenders from shopping among regulators for the easiest supervision.
More transparency and stricter rules for the way money flows between banks.
Tougher capital requirements for big banks.
Consolidation of consumer-protection enforcement. Read More...