President Barack Obama laid out his vision for reshaping US financial regulation on Wednesday, aiming to tighten oversight of large firms whose excessive risk-taking triggered the global economic crisis. The proposals have been described as the most sweeping overhaul of the nation’s financial rules since the 1930s.

President Obama: “I am proposing that the Federal Reserve be granted new authority and accountability for regulating bank holding companies and other large firms that pose a risk to the entire economy in the event of failure. We’ll also raise the standard to which these kinds of firms are held. If you can pose a great risk, that means you have a great responsibility. We will require these firms to meet stronger capital and liquidity requirements so that they’re more resilient and less likely to fail.”

As part of his proposal, President Obama called for the creation of an independent Consumer Financial Protection Agency. Obama also wants to give the Federal Reserve more power to monitor “systemic risk” to the economy posed by the largest financial firms. The Wall Street Journal reports executive compensation and hedge funds would also face more scrutiny. Bank regulation would be streamlined somewhat. Financial firms would be required to hold more capital.