Obama administration officials are debating whether to pare some of their more ambitious ideas to revamp oversight of financial markets, The Wall Street Journal reports today, in a nod to the political difficulties of pushing through sweeping changes.At issue, sources told the WSJ, is whether officials want to reorganize the basic structure of oversight, or whether they will settle for new rules at existing agencies that would accomplish the same goal.Many of the ideas under consideration could trigger a turf war on Capitol Hill and among government agencies. People involved in the process said that as a result, the plan could still break in several different directions.Among the ideas being actively discussed are a new agency to oversee banks, as well as a merger of the Securities and Exchange Commission and Commodity Futures Trading Commission. House Financial Services Committee Chairman Barney Frank (D-MA) has already said he doesn’t think such consolidation will happen, and his support would be integral to any major policy shift.Meanwhile, President Obama will reportedly announce today the creation of a Cabinet-level “cyber czar” position, stepping up his administration’s efforts to better protect the nation’s computer networks. The appointment will be followed by the formal creation of a new military cyber command that will coordinate the defense of Pentagon computer networks and improve U.S. offensive capabilities in cyberwarfare, according to various news reports.The cybersecurity chief will report to both the National Security Council and the National Economic Council, a compromise resulting from a fierce White House turf battle over the responsibilities and powers of the new office.
Obama Rethinks Financial Oversight
The Obama administration is expected to announce today the creation of a “cyber czar” while reportedly debating how ambitious they should be in their efforts to revamp oversight of financial markets in light of growing political opposition.
May 29, 2009