**President Obama will make a speech to financial leaders in New York later to push the case for more government regulation of big banks.**A White House spokesperson said the President would argue that, without new rules, there could be a repetition of the banking crisis.
He will tell bankers that it is in their interests to have new rules and they should not fight them.
BBC’s North America editor said it was “part-lecture, part-appeal” to bankers.
The proposed rules would include a new body to safeguard consumers’ rights - a consumer protection agency at the US central bank, the Federal Reserve - which would have powers to regulate all lending.
The bill also includes the formation of a nine-member Financial Stability Oversight Council, which would have powers to break up large companies if they were deemed to pose a threat to the stability of the financial system.
It also suggests limiting banks’ involvement in proprietary trading - where they trade their own money rather on behalf of investors - and their investments in hedge funds and private equity funds.
Awkward spot
President Obama’s fellow Democrats support the proposed bill, but Republicans largely view it as just more government bureaucracy.
They say the plan would enshrine government bail-outs of big companies.
But full-on opposition to the bill puts them in a awkward spot, says North America Editor Mark Mardell.
"If they vote against it they will be painted as the party that backed their wealthy friends on Wall Street, and put at risk the people on Main Street."This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
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