Financial Reform Efforts Gaining Momentum

The effort to enact financial reform seems to be gaining momentum nationwide.

The new energy comes from the deepening recession, continued focus on the results of the bailout of major investment banks and the growing awareness that millions of Americans will not be able to enjoy a secure retirement.

This is the result of the global recession, but there is a difference. The majority of Americans only have Social Security, 401(k) plans and savings to generate their retirement wealth. Housing equity has evaporated and along with it, goes a major source of wealth, which cannot be replaced.

This means there are very limited financial resources for people to retire. In effect, it essentially means millions of people will not be able to retire, or certainly not retire in the style they envisioned.

Hence the need for financial reform, since it affects how America as a society views its citizenry.

As a result, it's appropriate that that the need for reform was advanced by President Obama. In his speech, delivered across the street from the New York Stock Exchange, he called for more responsibility on the part of the financial services industry. But more is needed.

Groups Advocating Reform

Here are some links to key groups which are pushing for reform of traditional financial service industry practices which are working against the average investor and putting the national financial system at risk.

--President Obama's Speech on "a failure of responsibility" and the "structural problems" in the U.S. financial system.

--Aspen Institute paper on "Shot-Termism and U.S. Capital Markets"

--A proposal by House Financial Services industry Chairman Barney Frank to create a Consumer Financial Protection Agency

--The Committee for the Fiduciary Standard which seeks to raise the level of broker accountability and minimize the potential of conflicts-of-interest between brokers and their investment clients. This proposal would improve mutual fund sales standards.

--A proposal by the Corporate Values Strategy Group of the Aspen Institute.

--An innovative approach to local investing, which can be fueled by a philanthropic approach, called the Slow Money Movement also deserves attention.