Obama Proposes Financial Regulatory Overhaul, Create New Oversight Council

"Like all financial crises, the current crisis is a crisis of confidence and trust," Geithner and National Economic Council director Larry Summers wrote in the Washington Post Monday. "Reassuring the American people that our financial system will be better controlled is critical to our economic recovery."

"Our goal is to get it done this year," a senior administration official said Tuesday.

But it will be a tough task for the administration to get these plans through Congress, with dissent coming not only from Capitol Hill, but also from vocal industry opposition.

The U.S. Chamber of Commerce acknowledged the need for reforms, but expressed concern about whether the administration and Congress would come up with plans that would strike the right balance.

Chamber Weighs In

"We need to overhaul the system," said David Hirschmann, CEO for capital markets competitiveness at the chamber. "We hope the administration has not listened to those who only want to tinker at the edges. We believe it is the best for our long-term recovery to emerge from this crisis with a comprehensive overhaul and modernization of the regulatory system. If not now, then when Congress should take the necessary time to get it right rather than to move quickly in a piecemeal fashion that will only magnify the weaknesses of the current structure, add band-aids and new layers of regulation to a broken system."

Gerard Cassidy of RBC Capital cautioned that investors and bankers should brace themselves for "very harsh and strict regulations" from Washington. He worries that "an overactive and over-interventionist government could really stifle economic growth."

ABC News' Huma Khan, Sunlen Miller and Susan Rucci contributed to this report.

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