US to introduce new banking regulations
Published:Wednesday | June 17, 2009 | 1:30 PM
The US government is set to announce a major reform of banking regulations to prevent future financial crises.
US President Barack Obama is due to set out plans requiring big banks to put more money aside against future losses and curb excessive risk taking.
The US central bank, the Federal Reserve, will be given the authority to monitor major financial institutions.
The plan is the biggest shake-up of the US system of financial regulation since the 1930s.
Mr Obama says he expects Congress to work swiftly to get the plan legislated.
But he has warned that it will be challenged by government opposition members who have special interests.