President Barack Obama admits his new rules for U.S. Financial markets would mean more government intervention, but he also says it's desperately needed to guard against another financial crisis.
It has become a common theme during the first five months of the Obama administration-- two words: government control.
At the White House Wednesday the president said it's time for the government to take more control and play a larger role in regulating the financial markets and protecting consumers.
"Millions of Americans who have worked hard and behaved responsibly have seen their life dreams eroded by the irresponsibility of others and the failure of their government to provide adequate oversight," he said. "Our entire economy has been undermined by that failure."
The White House wants Congress to go along with the following plan.
First, more oversight control by the federal reserve over financial firms. Second, the creation of a government consumer financial protection agency. this white house says this new agency would put new rules in place to help consumers.
Mortgage brokers will be held to higher standards, exotic mortgages that hide exploding costs will no longer be the norm and home mortgage disclosures will be reasonable, clearly written and concise.
The plan also would also create a council of regulators responsible for deciding which financial firms are too big to fail and require more oversight. In addition, the White House plan would allow the government to have the authority to dismantle large firms if necessary and the plan would give increased federal oversight of complex transactions like derivative trading.
Critics are already lined up at the door claiming more socialist tactics.
"I just think that the government's involvement in the financial industry is going to be too big of a foot in an industry that's already having problems," said Rep. John Boehner.
"It does begin to look like you are getting into a situation where there is no area of American life that isn't going to have an executive office bureaucrat dedicated to it," Gene Healy of the Cato Institute added.
The White House tried to downplay the government control aspect with the president arguing that more Uncle Sam will be a benefit to the free market system.
"I'm convinced that by setting out clear rules of the road and ensuring transparency and fair dealings, we will actually promote a more vibrant market," he said. "This principle is at the heart of the changes we are proposing."