The broad outline of reform

We've known for some time now that financial system reform would be a big issue in 2009. Now that the inauguration is over, we're starting to a get a better feel for just how extensive it will be. The New York Times offers an article noting that the Obama administration wants to move quickly and decisively. It looks like now it will take an encompassing approach that aims for real reform across many categories, from ratings agencies, to hedge funds, to derivatives and more.

The credit rating agency solution being discussed is telling. There have been "reform" efforts by the agencies themselves, designed to convince the world that they can reform themselves. But none went to the heart of the issue: The debilitating conflict of interest when companies pay a for-profit public agency for their own ratings. The administration wants to tackle that. Which says a lot about its ambitions.

For more:
- here's the Times article

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