June 18, 2009

In an effort to prevent another collapse of the financial industry, President Obama -- joined by Treasury Secretary Tim Geithner, consumer and industry groups, and members of Congress -- will be unveiling a series of new regulations at 12:50 pm ET. A few things to mention: Nothing the administration announces today will be law; it will need to get through Congress. Also, there isn't the streamlining some would like to see, but administration officials tell us it's hard enough to add agencies and tinker with existing ones.

Eliminating one or more may be impossible in this Senate (think of the turf battles). Finally, the collective powers of the Fed chair, Treasury secretary, and FDIC chair are greatly enhanced. And, politically, this is a big victory for the FDIC’s Sheila Baer, who wanted to see her agency's power expanded -- not a rival agency created.By the way, here's a question for those following the administration’s policies regarding the economic crisis.