On Wall Street: McCain vs. Obama
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Barack Obama and John McCain have both stressed the need for greater transparency and imposing capital requirements on financial institutions since the debacles at Bear Stearns, IndyMac and Fannie & Freddie.
Also, considering that the economy is one if not the main concern for most voters, it's interesting that during the Republican Convention that many speakers, including former New York Mayor Rudolph Giuliani and Alaskan Governor Sarah Palin, have omitted economic policy from their speeches: fixing the housing crisis, credit crunch, improving the unemployment rate (tomorrow morning, over 75,000 more jobs lost in Q3 are expected to be announced) and curbing inflation.
Below are the two candidates' stances on "Wall Street." To see the candidates' other economic policies, click here: CNNMoney.com.
McCain
· Increase capital requirements on financial institutions.
· Remove some of the regulatory, accounting and tax impediments to raising capital.
· Examine how banks and other firms value assets that exacerbated the credit crunch.
· Increase transparency of complex financial instruments.
"Capital markets work best when there is both accountability and transparency. In the case of our current [credit] crisis, both were lacking." -- McCain
Obama
· Impose liquidity and capital requirements on investment banks.
· Streamline regulatory framework of the financial services sector.
· Create an oversight commission that would advise the president, Congress and regulators on the health of and risks facing financial markets.
· Give Federal Reserve supervisory power over any bank that borrows from it.
"Let me be clear: the American economy does not stand still, and neither should the rules that govern it. The evolution of industries often warrants regulatory reform..." -- Obama