Obama to overhaul regulation

<div>PRESIDENT&nbsp;Barack Obama will tomorrow outline the most sweeping overhaul of US financial regulation since the Great Depression, in an attempt to prevent a repeat of last year&rsquo;s financial crisis.<br />&nbsp;</div>
<div>Treasury secretary Timothy Geithner and White House economic adviser Lawrence Summers yesterday said the administration plans to create a &ldquo;council of regulators&rdquo; to coordinate supervision across the financial system. It also plans to raise capital requirements for all institutions, with more stringent requirements for the largest firms.<br />&nbsp;</div>
<div>And Geithner wants more &ldquo;robust reporting requirements&rdquo; for issuers of asset-backed securities and a reduction in the reliance on credit rating firms.<br />&nbsp;</div>
<div>He said the Federal Reserve will be given enhanced powers to supervise and seize control of large institutions through an &ldquo;orderly resolution mechanism&rdquo; if their failure might cause a financial panic.<br /><br />Geithner added: &ldquo;We want to have a more boring system, a little less exciting, a little less drama.&rdquo; He said the overhaul would eliminate &ldquo;gaps&rdquo; in the system that had exacerbated the crisis.</div>