President Barack Obama to push banking overhaul

President Barack Obama is to call for a series of sweeping regulatory changes to the framework governing the world’s largest banks in a bid to prevent a collapse like that of Lehman Brothers.

On the eve of the one-year anniversary of Lehman’s liquidation filing , the US President will on Monday warn that there remains much to be done to ensure the problems of the last 12 months do not happen again.

Speaking just 10 days before the start of the G20 summit in Pittsburgh – at which world leaders are set to discuss curtailing bankers’ bonuses among a raft of potentially restrictive reforms – he will also put the amount of capital banks hold on their balance sheets back at the top of the agenda, acknowledging that the demise of Lehman and Bear Stearns were a by-product of inadequate capital requirements.

In a wide-reaching speech on the need for regulatory reform in order to avert another financial crisis he will call on the US Senate banking committee to kick-start work on these reforms as soon as possible.

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