Wednesday, 21 July 2010

Regulation US style.

The United States government have never been particularly enthusiastic about the regulatory state but on this occasion they have beaten the UK hands down by signing into law a robust Financial Regulation Bill, the most robust piece of financial regulation in the US since the Great Depression in the 1930's:

This is how the Washington Post broke the story:
President Obama signed into law a bill that will reshape oversight of the U.S. financial industry. The legislation includes the creation of a new consumer protection agency, sets new limits on banks using capital for trading and investing in hedge funds, and gives the government power to close down troubled financial firms.

“These reforms represent the strongest consumer financial protections in history," the president said. "And these protections will be enforced by a new consumer watchdog with just one job: looking out for people — not big banks, not lenders, not investment houses in the financial system."

Congratulations to President Obama for his courage in taking on 'big business' in this fashion. Will the Con Dems have the courage to do the same?

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