President Obama’s recommendation: overhaul the financial system

The Economist published this 900-word summary of and commentary on President Obama’s 88-page white paper, released on June 17^th, on reforming the U.S. financial system. Major recommendations in the white paper include creating of a Consumer Financial Protection Agency (CFPA), requiring increased disclosure from firms that combine loans to create securities, directing the Federal Reserve System to supervise all firms considered to big to fail. The authors also pointed out what they considered to be obvious holes in Mr. Obama’s recommendations, such as his failure to mention how the various regulators of our financial system would better coordiate their efforts.

http://www.economist.com/businessfinance/displaystory.cfm?story_id=13856191

This article’s alternative lead began with a quote and then added, “If ever there was a week when financial regulation set pulses racing, this was surely it.” At 48 words it would be a bit long for a summary new lead, but I believe it suited as an alternative lead.

Only one quote was used; it was probably included only because it was amusing. After all, the goal of this article was to inform the readers what The Economist thought of the white paper, not to report on what people felt about it.

This article is definitely newsworthy. This report is the basis of what Mr. Obama will be asking Congress to do to in the coming months to reform the regulations of our financial system.