US Unveils Banking Reforms Plan

http://news.bbc.co.uk/2/hi/business/8104700.stm

In a bid to prevent a future financial crisis, the US government has chalked out a new financial regulation plan that entails tougher capital norms and stricter control to ensure consumer and investor protection. The weaknesses revealed by the sub prime crisis and financial meltdown in the US financial system are aimed to be resolved through the proposed reform of the country’s regulatory system. US banks will now be required to put aside more money to deal with future losses so as to curb excessive risk taking. Formation of a special agency is also proposed to regulate the mortgage and the credit cards segment. The changes are also expected to deal with systemic risks that have the potential to harm the whole banking system.