Regulators and legislators are considering action regarding lending practices, bankruptcy protection, tax policies, affordable housing, credit counseling, education, and the licensing .
[6] The Act included: A sweeping proposal was presented 31 March 2008 regarding the regulatory powers of the U.S. Federal Reserve, expanding its jurisdiction over other types of financial institutions and authority to intervene in market crises.
Many of the investment banks had limited capital reserves to address declines in mortgage-backed securities or support their side of credit default derivative insurance contracts.
Nobel prize winner Joseph Stiglitz recommends that regulations be established to limit the extent of leverage permitted and not allow companies to become "too big to fail", by breaking them up into smaller entities.
He has also recommended reforming executive compensation, to make it less short-term focused; enhance consumer protection; and establish a regulatory review mechanism for new exotic types of financial instruments.
[13] America's genius has not been in avoiding problems, it's been in surmounting them once they happen.President Barack Obama and key advisers introduced a series of regulatory proposals in June 2009.