Watching Wall Street

Globe Staff / September 15, 2009

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Here are some of the key provisions of President Obama’s proposals to increase regulation of the nation’s financial system and prevent another economic crisis:

■ Create a Consumer Financial Protection Agency to ensure consumers are treated fairly and can get sound information about mortgages, credit, savings, and other types of financial services.

■ Establish standards for executive compensation; give the Securities and Exchange Commission power to require shareholder votes on salaries and bonuses.

■ Subject hedge funds to regulations for the first time, forcing them to register with the SEC and disclose enough information to assess their financial stability.

■ Tighten rules for derivatives trading, including markets in credit default swaps, and increase transparency; boost regulation of the credit rating agencies that judge the risks of such investments.

■ Expand the powers of the Federal Reserve to regulate risk and set cash reserve requirements at all major financial institutions, including Wall Street investment houses, not just banks.

■ Give the government powers to take control of large financial firms, not just banks, when they face insolvency.