President Barack Obama says tougher regulation is needed in the U.S. financial industry, to prevent another economic crisis. The president is preparing for a legislative battle with Republicans over his financial overhaul proposal.Democrats in the U.S. Senate will try to push forward the president's plan, which would regulate derivatives, the complex financial transactions that critics believe helped start the 2008 economic crisis The legislation would also force large financial companies to pay into an emergency fund for failing banks, to prevent taxpayers from having to do so. The topic of today’s Hello Washington show today was US Economic Situation: Financial and Banking System Reforms. The distinguished guests were Dr. Kajal Lahiri and Dr. Hasan Imam. Dr. Kajal Lahiri is a Distinguished Professor of Economics, and Health Policy, Management & Behavior at University at Albany, State University of New York. He had authored numerous books and articles.
Dr. Hasan Imam is a former economist from The World Bank and former Special Advisor on Public Finance, Republic of Namibia. Professor Lahiri and Dr. Imam answered listeners questions on issues ranging from whether we are on the path to recovery to how will banking reforms affect foreign banking systems.