President to reveal plan to overhaul fanancial institutions

AP
Published: June 17, 2009

WASHINGTON (AP) - President Barack Obama is set to unveil a sweeping plan aimed at tightening government authority over U.S. financial institutions.

Among other things, the proposal would boost the power of the Federal Reserve. It also calls for a new consumer protection agency with oversight over lending and credit.

The new rules would also reach into now-unregulated areas of the financial sector.

Parts of the plan may prove to be a tough sell. Many bankers oppose a new consumer protection regulator and many lawmakers worry the Fed could become too powerful. Friction over those points could slow any major overhaul.

The president releases more details about his plan later today.