Obama to unveil his proposal to reshape Wall Street

BROOKE HART

Today in Washington, President Obama will unveil his proposals to reform financial regulations. It adds to what the president wants from congress this year.

These were rickety old rules that allowed the banking and housing market collapse. Instead of scrapping them the president admits he's rebuilding, he says to prevent a repeat.

In an interview with CNBC's John Harwood, President Obama said his proposed new rules aim to reshape Wall Street and spur growth.

President Obama said "If we can get that right, that, I think, is a permanent improvement that will enhance and not impede the operation of the free market."

Weeks of meetings led to the proposals.

Leading figures from banking and investing chimed in as well as consumer groups, lawmakers and big labor.

The Federal Reserve would get broad new oversight of financial firms.

The government could dismantle failing firms like AIG before any bailout.

And to oversee consumer debt like mortgages and credit cards, a new regulator would be created, for now called the consumer financial protection agency.

Senate Republicans held off judgment, deferring to the banking committee.

Senate Minority Leader Mitch McConnell said "I intend to take my lead from them, they're our experts, they're the ones who are tracking the issue."

With so many agencies and interests at stake, President Obama acknowledged the plan amounts to compromises.

President Obama said "we want to get this thing passed, and you know we think that speed is important. We want to do it right. We want to do it carefully. But we don't want to tilt at windmills."

Congressional leaders say they hope to pass some version of the new financial rules by year's end.

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