Tighter Financial Regulation Backed by Two-Thirds of Public, Poll Finds

As Democrats and Republicans prepare to face off Monday on legislation to more tightly regulate the financial industry, a new poll says that about two-thirds of Americans support stricter federal rules on the way banks and other financial institutions conduct their business.

Sixty-five percent backed proposals to rein in banks and the financial industry while 31 percent opposed them, according to a Washington Post/ABC News poll conducted April 22-25.

The public is split at 48 percent each when asked if they approve or disapprove of how President Barack Obama is handling the issue, but they trust him on it more than congressional Republicans by 52 percent to 35 percent. One percent trust both, 11 percent trust neither and 2 percent are undecided.

On specific elements of the legislation:

- Americans are nearly evenly split on tightening regulation of the complex securities known as derivatives, which financial institutions used to hedge their bets on risky investments. Forty-three percent favored such a move while 41 percent opposed it, with 17 percent undecided. The margin of error is 3 points.

- Fifty-three percent backed a provision in the bill -- supported by Democrats and criticized by many Republicans -- that would require large banks and other financial institutions to pay into a fund that would be used to defray the cost of dismantling large companies that fail. Forty-two percent oppose the idea and 5 percent are undecided. Democrats say this will help avoid the "too big to fail" concerns that led to bailouts during the 2008 meltdown, while Republicans say it will encourage more bailouts.

- Fifty-nine percent favor increasing federal oversight of consumer loans made by banks and other financial institutions such as mortgages, auto loans and credit cards. Thirty-eight percent are opposed. Opponents express concerns that creating a federal consumer protection agency to accomplish this would infringe on state regulators and would cause lenders to tighten credit.

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