Trust in markets, regulatory overhaul up: poll

CHICAGO (BestGrowthStock) – More than a year after the collapse of investment bank Lehman Brothers and two years after the start of the deepest U.S. downturn since the 1930s, faith in America’s financial system stabilized in the fourth quarter, according to a poll released on Tuesday.

The poll also showed increased support for financial regulation, a positive sign for the administration of U.S. President Barack Obama, which is seeking a major overhaul of the regulatory system.

The Chicago Booth/Kellogg School quarterly Financial Trust Index, based on data gathered from more than 1,000 American households during the fourth quarter, showed the number of people who trust America’s financial system at 23 percent, up slightly from 22 percent from the previous quarter and a low of 19 percent in the first quarter of 2009.

Support for regulation of financial institutions rose to 61 percent in the fourth quarter from 55 percent in the third quarter, but still below the 65 percent recorded by the index in the second quarter of 2009.

The Financial Trust Index also showed that 20 percent of Americans surveyed believe their house prices will decrease over the next year, down significantly from a peak of 47 percent in the fourth quarter of 2008.

“This shows that many Americans believe the housing market has hit bottom and is starting to recover,” said Paola Sapienza, a co-author of the poll and finance professor at the Kellogg School of Management at Northwestern University.

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Trust in markets, regulatory overhaul up: poll