Regulatory alert: Obama plan calls for tighter industry regulation

As part of a sweeping package of financial services industry regulations revealed on Wednesday, June 17, the Obama administration has still opted to let states retain much of their current regulatory oversight.

A new department, the Office of National Insurance, has been proposed to act as a government watchdog to nearly every aspect of the industry.

As well, the federal government would further empower the Federal Reserve Board to oversee companies which might pose a future risk, and subject them to more stringent rules.