Knee Jerk Reaction by The President?

Late Wednesday afternoon the President appeared on television to advise the public that he was instituting new regulations for Wall Street. He said we need more regulation, and the fear is that the medicine may be more damaging than the disease that exists on Wall Street.
Wall street reaction was that Obama is being "mean spirited" and his actions will make us less competitive in the World Market place.
Source: Charles Paine

On the same day that Obama made this, I can only call it a threat, the EU was making the same move in their report presented to the European Commission on Wednesday. The report calls for two new bodies to boost financial oversight in the EU. Leaders are set to discuss the watchdog agencies next month.

The European Union wants to get serious about both financial oversight and monitoring risks to the economy. A new report presented to the European Commission on Wednesday recommends the establishment of two new watchdog groups in an effort to prevent a repeat of the financial meltdown that has European Union economies reeling.

The document will be used as a basis for a European Union discussion on financial supervision scheduled for next month and could also inform Europe's negotiating position at the G-20 summit in London at the beginning of April.

Running to 68 pages, the report is chock full of recommendations and ends with the warning: "Work must begin immediately." The report is careful to avoid proposing a single, all-powerful EU regulatory body -- an idea that many member states find unpalatable -- but does include some ideas that would require countries to delegate oversight powers to the EU.Sound familiar? Crisis in Europe and Crisis in the USA!

"A key lesson to be drawn from the crisis," the report says, "is the urgent need to upgrade macro-prudential supervision in the EU for all financial activities."This is Liberal speak for more government control over the financial sector! And it is on both sides of the Atlantic. One World anyone?

Expect that some time in the next 24 months the Congress of the USA will pass legislation to share our financial information controls with the EU.
Since the second measure would be the establishment of a European System of Financial Supervision (ESFS) to coordinate the transfer of information and supervision throughout the 27-member bloc.

"The group believes that the world's monetary authorities and its regulatory and supervisory financial authorities can and must do much better in the future to reduce the chances of events like these happening again," the report states.Source: Der Spiegel

The legal problem with the government oversight in this Country, is the fact that the government is denied by the Constitution from making loans to Banks that prescribe what that business will do with the loans.
The right in the U.S. Constitution to make or enter into contracts prohibits the government from limiting whom the banks can contract with,including the obscene monies that Banks pay their CEO's!
So from my point of view this is just more of President Obama's bluster and talk about something he cannot do!