President Obama’s financial reform proposal, what do you think?

I am all for the Consumer Financial Protection Agency in concept, but the list of what it might do seems weak. I want this board to have true power to shake down financial products and let consumers know what they are and what dangers they pose. From what I see, it looks like this board will primarily require mortgages to be simpler. Not enough consumer protection for me.

I do like that the Securities and Exchange Commission is told to hold stockbrokers to a fiduciary standard when they give advice. That means, brokers would have to put your interests ahead of their own. Right now, under SEC rules, brokers need only recommend something suitable for you. And who defines suitable? If two products are suitable, why not recommend the one that pays the higher commission? Suitability is squishy. A fiduciary standard is a much higher standard. I’d like to see it be the rule, for everyone who dispenses investment advice.

But then again, I come at this from a perspective of people making long-term plans to accomplish their own financial goals. I’m not the take-the-money-and-run type.

To read the Obama adminstration's proposal, go here:
http://www.treasury.gov/news/index1.html