U.s. Financial System Overhaul, Financial Industry | featured news

Sen. Christopher J. Dodd indicated that Democrats would forge ahead with their own bill, following months of talks that had been aimed at reaching a bipartisan consensus.

President Barack Obama singled out financial institutions for causing much of the economic tailspin and criticized their opposition to tighter federal oversight of their industry....

President Barack Obama on Tuesday embraced a House bill that would give the government unprecedented power to seize bank holding companies and other large financial firms teetering on the brink of collapse and stick their competitors with the cost....

The financial sector ranks just behind the health industry in lobbying Congress this year: $223 million has been spent to influence financial reform efforts, according to the Center for Responsive Politics.

But Politico reports that the lobbying frenzy over "re-regulation" efforts is just beginning.

Some senators criticize a plan that would give the Federal Reserve more power to police large companies.

The Obama administration's proposal to overhaul financial regulations, aimed in part at restoring global confidence in America's economic system, triggered a welcome but largely wait-and-see response from overseas investors and analysts.

President Obama said he was looking for a "careful balance" when sketching his blueprint to stabilize the nation's financial sector and wring from the system the kind of risky practices that propelled the country into economic turmoil.