Bird's eye view: New rules of financial system

Obama administration proposed major changes to the way the financial system is regulated, with the intention to clamp down on hedge funds, PE firms, derivatives and credit default swap markets.

SYSTEMICALLY IMPORTANT FIRMS

Large, systemically important financial institutions, even non-bank ones, will have to meet higher capital standards. Tougher regulation of these firms, by designated regulators on cards.

ACCOUNTING

Revision of accounting standards for loan loss reserves to account for losses throughout the business cycle. Fair-value accounting rules will be reviewed to reduce their pro-cyclical tendencies, while still providing transparency.

DERIVATIVES

Clarity and more supervision of overnight and short-term lending markets, such as those for tri-party repurchase agreements, and OTC derivatives.

HEDGE FUNDS

All advisers to hedge funds, PE and VC funds, whose assets under management exceed a not-yet-determined amount, must register with the SEC. SEC to share reports it gets from funds with the systemic risk regulator.

CREDIT DEFAULT SWAPS

Government to regulate markets for CDS and OTC derivatives. All dealers in OTC derivatives to be subjected to oversight as systemically important firms.

MONEY MARKET FUNDS

The administration will urge the Securities and Exchange Commission to strengthen regulations around money market funds.