Obama blame American on irresponsibility for current economic problem. In order to fix the loophole, he will give the Fed more power to regulate the currently unregulated region such as hedge fund, over-the-counter derivatives and exotic instrument like credit default swap. They, plus the brokers and originators of asset-backed securities, are required for additional investor protection including but not limiting to greater disclosure.



Fed is also given the power to supervise holding companies and large financial institutions but need OK from the Treasury Department before extending bailout to them. A system for the orderly disposition of any troubled, interconnected firm whose failure would pose a risk to the entire financial system, together with rules that insist that financial institutions hold more capital for safety's sake will be set up. A new agency will be created to do the job. FDIC will continue to supervise smaller banks.

Obama will also create a new agency, Consumer Financial Protection Agency, aiming at guarding against credit and lending abuse.

People generally give the Obama good mark for the effort he had put forward although some powerful lobbying groups, such as the U.S. Chamber of Commerce, expressed opposition to parts of the plan.