President applauds regulation overhaul plan in letter to key House Democrat
By APTuesday, October 27, 2009
Obama hails financial regulation bill in House
WASHINGTON — President Barack Obama is cheering an effort to rein in large financial firms. He says proposed legislation in the House would let government take down failing institutions and make taxpayers whole.
In a letter to House Financial Services Committee Chairman Barney Frank, Obama said the belief among financial executives that the government would ultimately protect them “creates a perverse incentive for large firms to take reckless risks.”
The legislation aims to limit the risk from companies now deemed so large and intertwined that any one failure would threaten the entire economy. Under the proposal, financial firms with more than $10 billion in assets would have to foot the bill for saving or shutting down a giant ailing institution.
