ObamaCare For The Financial Sector

As Tim Cavanaugh noted yesterday, President Barack Obama will spend part of today, the anniversary of the Lehmann Brothers collapse, talking up the need for new rules in the financial sector. Because "Too Big to Fail" and more just doesn't give DC or Wall Street enough on-demand power and resources. From an AP preview of the speech:

Obama has sought tougher capital requirements for banks, arguing that banks' buying of exotic financial products without keeping enough cash on reserve was a key cause of the crisis. Treasury Secretary Timothy Geithner has urged the Group of 20 nations to agree on new capital levels by the end of 2010 and put them in place two years later.

The administration also has proposed increased transparency of markets in which banks trade the most complex - and potentially risky - financial products. Obama's broad plan also would give the Fed new oversight powers and impose conditions designed to discourage companies from getting too big.

Er, that's not quite the whole story. Proposed legislation would also explicitly rate institutions as "too big to fail" or "sorta too big to fail" and more, thus adding another level of government backing to a process that already has too much of that. More here.

What's in the pipeline and how will it affect what's in your wallet? Watch these two Reason.tv videos, featuring Reason Foundation's Anthony Randazzo and George Mason/Mercatus' Todd Zywicki for the lowdown on how Obama wants to simplify your financial life. Each is approximately 10 minutes long. For downloadable versions, go to Reason.tv.