What Obama’s financial oversight plan really means to you


Granted, it’ll be a while before your company feels any effects from President Obama’s new financial oversight plan. But here’s what’s in store for you when it passes.

There are still rounds of wrangling ahead to meet the admittedly ambitious goal of having a financial oversight plan passed by year-end.

Still, we’ve scoured the president’s 88-page whitepaper to uncover what will impact you most when a plan does pass.

Impact on cash flow

Yes, the org chart will look rather different in terms of which agencies oversee which parts of the U.S. banking and financial system.

And companies in the financial services industry should prepare to have their worlds rocked.

But if you’re in any other industry, the area of your business where you may feel the changes most acutely is accounts receivable and collections.
That’ll happen in three specific places:

1. Sounder credit checks. If the proposal passes, your company will be able to have more confidence in the data your finance staffers pull from credit ratings agencies. More scrutiny and greater disclosure will be required from agencies under Obama’s plan.

2. Improved collections from small biz customers. A major component of Obama’s plan is the creation of a regulator for credit cards. That’ll make it a more appealing payment option for small-biz customers, resulting in a potential cash flow boost for you.

3. Fewer mega bankruptcy surprises. The unpleasant shock of some enormous companies’ going belly-up was a major contributor to our recent economic woes. Expanded Fed power will attempt to supervise companies that are so big that if they fail, they could harm the economy. That could head off major losses for your firm (or your customers, which also impacts your cash flow).

0 thoughts on “What Obama’s financial oversight plan really means to you”

  1. What is this… some sort of covert way of shilling for a bad idea?

    1. My business doesn’t need Obama for better credit info. Even a moron in business would not rely on simple credit agency provided data alone… we seek more detailed financial info of our customers now, and take the time to confirm. In almost 20 years, we’ve never had a bad receivable. Do your own due diligence… Can anyone say “personal responsibility”? Where does our expectation of what the government is supposed to provide end? And remember, this is a double edged sword… We don’t need the government in our business any more than it already is.

    2. Great… Obama is going to make it easier for credit card users… “…make it a more appealing payment option”, or as Obama boasts, “Give users more rights”… which translates into “make it easier for borrowers to renege.” Great advice here… hasn’t recent history demonstrated we have a serious problem with credit card abuse in this country as it is? Again, we’ll just pass our personal business responsibility on to someone else… in this case, the credit card companies to soak up the bad debt… Great idea… terrific! In the end, that will cost us all… even those with good credit. Look, if you can’t read your statement or understand the basic terms and obligations between a borrower and lender, then I don’t want you as a customer anyway.

    3.”Expanded Fed power…” Terrific… enough said… just what we need. OK, make me a believer; show me one thing a bigger government bureaucracy has run well… and efficiently? Fanny Mae? Freddie Mac? Education? Social Security? Medicare? I know the Fed doesn’t run these things, but I’m still waiting for someone to give me concrete proof as too the qualifications of those “geniuses” on Capital Hill to run anything… since ultimately, they write the legislation and pull the strings.

  2. These things are the least of my worries – Nobama’s plans to impose bigger government on everything he can as well as raise revenues (taxes) on anything that moves – these are the things that bother me. Crap and tax, er, Cap and Trade, is the biggest fiasco of all. And when we get sick of all this all we have to look forward to is socialized medicine to get us better.
    Change we can believe in, indeed.

  3. Amazing. During the campaign… words like “Socialism” were used to describe Obama’s plans. We were told he was the most liberal member of the Senate. But people didn’t want to look at what any of that really meant. They just wanted “change”.

    Well, as my business fails and I lay off the last of the 10 employees that I had a year ago, “change” is about the only thing I have left in my pocket. Now he wants to tax what little I have left to pay for all of the free services that the government will provide.

    The good news? Well, at least we’re safe from our enemies because Obama is “deeply concerned”.

    God help us.

  4. At what point in time do we become responsible for ourselves? The bank did not force us to get into debt over our heads, they didn’t force us to buy houses we couldn’t afford. These are choices we all make and must face the consequences if we can not fulfill these obligations. Government is the most inefficent solution there is. It’s going to cost us enormously more than just letting things run their normal course. Rest assured that whatever plan they come up with, government employees will not be required to participate. Just like they don’t participate in Social Security. Why does government fight so hard to keep Social Security afloat? They need those dollars. The mice are in charge of the cheese and this needs to change, soon. Let’s start with term limits on all offices and go from there.

  5. I agree with all of the earlier comments. I would suggest we strongly consider voting against all incumbents regardless of party affiliation. We need to send a clear message to all politicians – we want honest representation reflecting the best interests of the country as a whole, not political hacks beholden to “special” interests.

  6. Looks to me like we have more than one moron in America…just read these idiots comments. NEWS FLASH: Obama did not create this mess. Bush controlled the economy the last 8 years and passed this mess along. Go back to your cave and watch Fox news.

  7. The fact that I have time to read drivel like this unsolicited spam newsletter speaks volumes about my small business under Obama’s economy — his administration is taxing my clients right out of business. If the “good news” will be fewer bankruptcy surprises from mega-companies, the bad news iwill be the hundreds of thousands of “out of business” signs on the windows of small businesses everywhere when we and our customers are taxed out of existence. I’d like to know the name of the think tank behind this propoganda. Oops, I mean “newsletter.”

  8. I think TRN’s reply above hits the critical issues right in the nose.

    Every “solution” you mention is a government intervention (read “Power Play”) looking for a pretend problem.

    Not one of these power plays will do a thing for business except make it more difficult to work. It will be a great boon to the power of the faceless, and spineless bureaucrats who will staff these useless offices and cause business people no end of problems.

  9. Wow, I must say I’m not surprised by all the skepticism from all these postings. TRN- or should I say “The Rush Numbskull”- has done a great job of twisting everything into a negative. And Seabiar, was Obama running your company? As your business fails and you have to lay off another 10 employees perhaps you can look at yourself as a business person first and point blame where it should be- on you!

    He’s the net, net folks- the economy sucks and we’re all struggling. Time will get us out of this, as history shows, but we all answer to someone. Why shouldn’t big business and the financial industry have to answer to the government and regulators?

    Let’s face it, it’s not a problem until it’s a problem. Just like in your business, TRN, you wouldn’t make changes in your business unless change was the only answer.

  10. It really is an art to cherry pick topics and spin them to fit one’s own world view. I’d gladly pay a 7% payroll tax if it took the place of the 20% I spend to give benefits to my employees, especially if it actually improved health care.

    But no, it’s easier to scream “socialism!” (or fascism as the paranoia dictates….or both if you’re clueless) and hate on Obama because someone told you that “Obama likes taxes” and “Republicans like small business” despite all the evidence to the contrary.

    So complain away, but when Obama is able to pass whatever he can of his agenda and all these dire predications you make don’t come true, are you going to be able to admit you were wrong or will it just be time to create another bogeyman to blame your problems on?

    PS No, I don’t have any clue where businessbrief.com got my email from or why they are spamming me.

  11. Unbelievable !! We actually have a business publication trying to spin government control as a good thing. We shouldn’t be surprised though, it has been proven time and again that the Press and related organizations have no desire to present an objective, unbaised opinion.

  12. Obamanomics is failing and destroying the American dream. Government intervention continues to stifle the entrepreneurial spirit of American business people and reduces incentives for investment.

    The “change” appears to be transforming the great economic system in the U.S. driven by free enterprise into a socialist system driven by equality.

    I don’t believe the voters that voted for “change” were voting for this type of change. The uproar will become more evident as our freedoms continue to dwindle.

  13. To: Moderator who hasn’t yet moderated my comment
    Bet you’re overwhelmed, no? Don’t try to pass off Obama as a friend of small business. He was no friend of Joe the Plumber. He’s no friend of those of us who own businesses.

  14. While the banks did not force people to over spend on houses, the fed did raise interest rates full well knowing what would happen. Now with the banking regulations, small businesses cannot get a loan to provide more jobs or stimulate the economy.

    Not banks are calling in notes that they hold even though payments are being made. For instance, I own a building that I purchased for 8 Million, financed 6 million, and it is not worth 4 million. The bank wants the debt paid down to 3 million or they will foreclose. How much sense does that make if the payments are being made?!?!

    Banks wont loan money to striving businesses, taxes are going up, more government regulation. Change is out of the frying pan into the fire.

  15. John is off the mark. You cannot replace a 20% benefit package for 7%. I don’t want Obama care deciding what, and when, I can have health care. I’ll pay the 14,500/year to insure my family.

    Medicare/Medicade currently functions because the private sector indirectly pays for a significant portion of the costs. If the whole mess becomes government run, there will be less money paid in.

    This is where the unintended consequences come in. It will no longer be prudent business to research and develop new drugs and methods – business won’t get the necessary ROI. Advances in medicine will only be in the form of “lower cost” methods.

    I hope everyone is satisfied with our current level of care, because there will never be an alzhiemers medicine, cancer cure, or any other major advance. Major advances have always been driven by business with PROFIT being the motivation. No profit, no motivation.

  16. Obama is spending money that the country does not have and trying to put into place programs (like free health care) that the Country can not afford. If we follow his path we are in trouble for the long haul – 10 year or more. I just do not understand how smart people can agree to raise taxes (which will further stall the economy) and spend money with no real idea of how to pay it back. This is a REAL mess! I have worked very hard for what

  17. I won’t mention any names – but someone has an incredibly myopic veiw of the health care proposal currently under consideration. I, for one do not want, or need a government run health care. The government has gotten everything wrong so far, really doesn’t care what the people think, feel, or desire (in spite of the fact they are supposed to be working for us). Before we talk a national healthcare system lets have the congress give up the special social security system and healthcare benefits they have and live on the same programs they dole out to the rest of the nation. Remove the amounts paid to government officials to maintain staffs and offices after they retire, etc.

  18. Liberals want to blame Bush for this recession. I don’t have a problem with that. I was disappointed with his second term, especially his last year. Explain to me how Obama is anything but another Bush, at least fiscally: increased troops, additional bailouts, earmarks galore, and more spending than revenue.

    If anyone is interested in a really good book about the actual causes of this depression and the cycle of them that continue to occur, check out “Meltdown” by Thomas E. Woods Jr. Unlike our friends on the other side of the political realm, Thomas not only tells you about the causes, he sites sources to back up his ideas.

  19. Lock up your money! Congress and Obama want as much of it as possible, and their policies are going to drive small business owners into debt or out of business. Didn’t we see this movie when Clinton got elected? “I will not raise taxes.”, and then BANG – one of the first things he did was to raise taxes.

    You cannot spend your way out of a recession. Small business growth and investments in new business are the way to stimulating the economy. But then the government wouldn’t have as much control over the private sector as Obama and his buddies in Washington want. And his health care plan is a joke. Why doesn’t he just move to Europe instead of trying to model the United States after governments that have already tried these programs and found them to be a big fat failure? He won’t be happy until he’s left this country in ruins.

    Save your country – just say no to more of Obama’s spending plans.

  20. This is pure spin!! And, as for John…you are not thinking clearly. You won’t replace 20% benefit cost with a 7% payroll tax and have the same level of coverage; and, health care won’t be improved, but will only be controlled and limited by bureaucrats. Think Canada! Where will you get the Doctors to do a national system? There is already a shortage and geographic distribution is skewed.
    The issue isn’t health care provision…it’s the cost health insurance. (Tell me of anyone turned away from an ER).
    Medicare shows gov’t insurance creates inflated costs in the healthcare system due to huge volumes of administrative “paper” work, controlling reimbursement (and electronic records won’t impact costs or reduce errors to the extent claimed by Obama) and increased fraud which is well documented in MediCare’s history. Without MediCare there was less fraud, the patient was actively involved in his/her treatment, and expenses were lower. Creating tax credits for health care insurance purchase; and, allow for insurance portability beyond COBRA will help.
    This is a political move to get votes for Dem.s at USA’s expense. Don’t be gullible John. Tell your congressperson to reject this idea and let the market take care of this.

  21. Why the fuss, everyone? Just adapt to the new circumstance and do business WITH the government. You guys can stand firm and make a point — but I’m going to do whatever it takes to get in on the action and put your money in my pocket.

  22. Why are all of our problem with the ecomony is President Oboma fault. Eight years ago we had a buget surplus. With tax cut, illadvised war, coperate and indivisual greed got us where we are today. Eight years can’t be fix in six month so stop whining and give him a chance and if his plan don’t work vote him out. At lease you can voice your opinion before you could not and like our former VP said who cares what the people think any way.

  23. It seems that most of the comments are written by educated individules. However, they are not very open minded. There is a lot to fix from the past and 8 years. By the same token you really can’t break anything in 6 months. Calling this “Obama’s Recession” is actually funny. I am not into name calling and I do repect everyone’s opinion even if they are worng.

  24. President Barack Hussein Obama has got the American people into a real mess … along with the ACORN and paid union morons that helped vote for him. Any moron who kisses the hand of an Arab oil prince does not think clearly and is an embarassment to America! Obama is a snake and no friend to small business. Obama agreed to be President and fix our problems but he continues to sink our economy into deeper financial trouble, raise taxes, print more money we don’t have, embarass the U.S., attempt to unionize small business (card check), force “cap and trade” onto businesses, lie about being transparency, has no foreign policy, makes it up as he goes, wants to weaken our military, fire CEO’s at private companies, ruin health care for Americans and did I mention he lies?
    These are Hussein’s things.

  25. Who doesn’t see this whole thing as a bad idea. Our Father Obama is going though every aspect of our lives and freedoms and telling us what we can and cannot do, what we should and should not think. Put this together with the creation of a shadow government of Czars reporting only to him, and eliminating the basic government system of checks and balances, what do you think we have growing here. Can anyone say 1938 Germany?

  26. Ground zero is a monument to all those who suffered and endurd the hardships of 9/11 to take it away is one thing but obama is pretty much spitting on the faces of all Americans who waved the AMERICAN flag to honor those who were victims that day. This is the outcome of America’s mistake but America we should have learned by now. Everyone makes mistakes lets not make this one again. this so called AMERICAN president needs to reevaluate his morals.

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