President-elect Barack Obama said Thursday that remaking the nation's financial regulatory system will be one of his first initiatives, and he pledged to streamline authority, consolidate agencies and spread financial oversight far beyond the banking system.
New regulations are likely to fall on financial institutions currently seeking federal assistance that are either lightly regulated or not regulated at all, Obama aides said. Mortgage brokers are under particular scrutiny, as are hedge funds and private-equity firms.
Mr. Obama, who introduced his financial-regulatory team Thursday, hinted at consolidating the hodgepodge of financial regulators, including the Securities and Exchange Commission and the Commodity Futures Trading Commission. One focus will be revamping the system so that financial firms can no longer shop around for regulatory agencies that offer the lightest possible touch, an Obama aide said.
