I'm gonna admit right out of the gate that I haven't done much homework on this one yet. But I'll fire a quick couple of shots over the bow as to why I think Obama-styled financial reform is yet another loser for all of us.
First, risk in the capital markets is a GOOD thing. By attempting to insulate consumers and investors from risk, the same will undertake such investments more carelessly relying on the government to "cover their sins" and do the due-diligence for them. Once again, as with healthcare, welfare, unemployment and a host of other programs, shifting the responsibility from the consumer/investor to the government aka "society" at large will only result in more cost and potentially more problems. Keep businesses accountable to their customers and competitors directly with appropriate laws and enforcement against misconduct and the free market will thrive.
Second, Obama is a power hog. He wants to suck up top-down (executive) control of EVERYTHING he can get his arrogant, progressive little paws on--because, of course, father knows best. Eventually (maybe sooner than you'd like), the Dems will be out of power. Ask yourselves this, lefties: Would you want Bush to have that kind of absolute control? If you give it to the big Zero, you're giving it to the next Bush just as surely. This is yet another attempt to demonize capitalism to both undermine and control it.
Third, here's another thousand-page bill that no one will read before it's passed and the consequences of which are unpredictable at best. Here's a suggestion: Identify the specific problem you wish to solve. See if the problem is already addressed in current law. If so, enforce it. If not, devise a rational, simple, common sense, bi-partisan solution and write a new law to fix it. Forget about "comprehensive" reforms. Solve specific problems one at a time. Leave out the earmarks and political horse trading. Pass a good law that everyone can understand and a solid majority can support.
Finally, Obama style statism (call it by whatever ism you choose) is a disaster for all except the rubes at the top; be they on the government or corporate side. It can only lead to more collusion between the state and the monied interests that the ruling party tends to favor. It means more big government intervention, more cost, more corruption, less efficiency, less profit, less innovation, lower quality, less responsiveness to the markets, more government dependence, less autonomy and independence, less opportunity for the regular guy, and more locked in power for the people who already possess it.
Whatever avarice you ascribe to capitalist corporate America, why would you ever think there's less of it in government?! The only problem is, public sector greed tends not to stop with the lust for riches. It seeks to control the lives and properties of others, as well.