U.S. President Barack Obama said Tuesday that a single regulator would oversee the large institutions whose failure could threaten the stability of the entire system.
"What we do have under our proposal is that for tier-one institutions, the big institutions, who if they fail -- require us to shore them up -- for those folks, they are going to be under a single regulatory body," Obama said in an interview with financial news television network CNBC.
Under the new plan, which will be announced by Obama on Wednesday, there will also be a new regulator to protect consumers and investors from risks in the financial world.
The new regulator, an independent Consumer Financial Protection Agency, would have the power to impose fines and allow states to pass laws that are stricter than the federal standards.
"The problem is right now you have consumers and investors, (and) the agencies that are responsible also have responsibility for the integrity of the institutions," Obama said Tuesday in another interview with Bloomberg TV.
"So you've got divided attention. We want to make sure we've got a consolidated focus on consumer and investor protections," said the president.
In the interview, Obama also acknowledged that the unemployment rate might hit 10 percent this year as the current crisis continues.
"Yes. I think that what you've seen is that the pace of job loss has slowed, and I think that the economy is going to turn around," said Obama when asked that whether the jobless rate would reach 10 percent.
"But as you know, jobs are a lagging indicator. And we've got to produce 150,000 jobs every month just to keep pace, just to flatten this out," he added.