Financial Regulation
McCain: McCain has said he thinks more time is needed to see how the mortgage and credit crisis plays out before committing federal resources to the problem. But he generally opposes government intervention in the market, for big banks or for homeowners, except to prevent systemic risk. McCain did support the Federal Reserve's bailout of Bear Stearns. McCain has said he would appoint a Justice Dept. task force to assist state attorneys general in investigating mortgage fraud.
Obama: Obama has proposed a six-point plan for regulating the financial-services industry. In it, he supports giving the Fed oversight over any institution for which it is providing credit. He also calls for an end to the "balkanization" of the government's financial regulatory industries to address the no-longer clear lines between commercial and investment banks. Also, Obama wants to increase principal requirements for complex financial instruments like mortgage-backed securities, and to investigate the ratings industry.
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