US gov announces major banking reform

The US government has announced a major reform of banking regulation to prevent future financial crises.



The overhaul will require big banks to put more money aside against future losses to curb excessive risk taking.



Consumers will get a special agency to protect their interests and regulate mortgages and credit cards.



In outlining the reforms, President Barack Obama described them as the biggest shake-up of the US system of financial regulation since the 1930s.



The US central bank, the Federal Reserve, will be given the authority to monitor major financial institutions.



The US President said the lack of oversight among finance firms prompted systemic abuse causing risks for both companies and individuals.