President Obama is rolling out plans to beef up federal regulators and launch a new financial watchdog. What do you think needs to be done to avoid a repeat of the financial meltdown? See LINK:

Dont appoint folks that helped create the mess to lead the U.S. out of the mess they helped create.Soon at least from what I am reading,the President wont have to do much of anything,between czars and watchdogs.Nor will either houses of Congress,if all these have to do is report to the President.And what does the U.S have a Sec. of the Treasury for if a new financial watchdog is needed?..Is My opinion.Doesnt make it right or wrong.Just Mine.

tighter restrictions on the types of loans banks can give out, if they allow subprime loans, closely monitor them. and tighter regulations, and more credit card regulations which they have already done however in order to completely eliminate the threat for another financial crisis, you would have to eliminate human greed, which can not happen

during my research consulting gig at an investment firm after the financial meltdown last year i observed the following fundamental flaws in the financial system: 1. a procyclical financial system that magnifies economic & financial fluctuations 2. conflicts of interest and incentives encouraging excessive risk-taking by financial players 3. creative financial innovations that werent transparent and served as vehicles for systemic risk buildup 4. extremely lax regulatory framework, with almost no oversight of the private equity firm shadow financial system, bank special investment vehicles and private equity & hedge funds 5. excessive proliferation of predatory & subprime lenders here are some recommendations: 1. i support obamas new financial watchdog. we need watchdogs for the watchdogs to minimize corruption and to closely monitor the regulatory system. our current system is taxed as it is ~ look at the disaster that happened under their watch. i hope these financial regulators will be given adequate personnel and resources to do the job right and enough power to enforce tough new regulations. 2. wall street should create an emergency bailout fund. a transactions tax on security sales wouldnt be a bad idea. this could generate a buffer of billions of dollars in a bull market ~ enough to rescue failing institutions in another market downturn. 3. restrict debt growth through countercyclical capital requirements. in todays procyclical system, as asset prices rise, bank capital rises, creating more credit creation capability. banks can then increase loans until they reach the regulatory capital limits. this type of lending causes a rising demand for securities and higher security prices, perpetuating the cycle. to control the financial asset expansion rate, regulators need to impose countercylical capital requirements or reserve provisioning. 4. reform assymetric and perverse incentive structures for financial institutions that encourage excessive risk-taking. huge incentives for top financial executives are commonplace during boom periods ~ they dont have to be repaid during the economic downturns. these incentives are very problematic. to reduce excessive risk-taking incentives, exorbitant salaries, bonuses, and other compensation during an upturn should be repaid in the downturn. new compensation contracts should be required or implemented through escrow funds. golden parachute payments should be curtailed. 5. rainmakers should pay for bailouts. institutions too large to fail should have top firm rainmakers pay substantially when those firms are bailed out. distinctions should be made between the financial institution and the agents who made decisions to take excessive risk and were richly rewarded from these decisions ~ top management, key traders, and other key operators. 6. institute regulatory oversight of the shadow financial system. the unregulated shadow financial system of hedge and private equity funds and bank special investment vehicles were largely to blame for the financial crisis. nothings changed, theyre still waiting in the wings waiting to rear their ugly heads again. these institutions should be brought under strict regulatory framework and applied to other financial institutions. 7. implement a regulatory pre-cautionary principle for new financial products and processes to determine whether they should be allowed on the market. regulators should review whether proposed innovations could increase systemic fragility and have serious negative ramifications. ruinous innovations such as collateralized debt obligations (cdos) and credit default swaps were major contributors to the financial crisis. under the new system, these types of products could be eliminated. 8. mandate due diligence of complex structured financial products. financial institutions that create mortgage backed securities, cdos and other opaque mortgage backed financial assets should perform due diligence on individual securities contained in these products as a condition for their sale. this would obligate the issuer to evaluate risks of each underlying mortgage, then use this info to evaluate the asset-backed security risk under varying conditions that might affect the value of the underlying mortgages. due to the costliness and difficulty to satisfy this due diligence, the most complex securities would become unprofitable. sales of these securities should be banned if not in compliance with regulations. 9. move financial security transactions onto exchanges. most derivative products and all complex cdos, credit default swaps and exotic financial instruments responsible for the financial crisis arent traded on the open market, but in private over-the-counter transactions. if derivative securities were exchange traded, otc securities could be simplified, commoditized and shifted to exchanges where they would be transparent, have less counter-party risk and provide a less expensive credit source. really complex products such as cdos, which cant be simplified, would be eliminated as a result. 10. restrict off-balance sheet vehicles. move risky investments back on bank balance sheet and require adequate capital to support them. capital requirements should be adequate to protect bank solvency even during periodic liquidity crises. 11. institute banking reform capping usurious interest rates to minimize predatory sub-prime lending, which has the highest default rates.

WE can't avoid it..he has icreased our debt and deficit 3 fold already, more than any other in a very short period of time... financial watchdogs,pshaw....the RULER and his 'czars'..he wants control and obediance....he's in a financially stable and self luxury position ....what does he care of our finances...not one WHIT.... he has a POWER and Control hunger...that his little watchdogs/czars will help him acheive....the HIGHER AUTHORITY....