U.S. President Barack Obama says he wants to increase global financial regulation.

In a speech to U.S. finance firms in New York on Monday, he spoke about the need for greater regulation from the government and greater responsibility from business in order to prevent another financial meltdown. “[W]e’re proposing the most ambitious overhaul of the financial regulatory system since the Great Depression,” he said.

But toward the end of his speech, he also highlighted the need for America to work with other countries to establish a global system of regulation. “Essential to this effort is reforming what’s broken in the global financial system—a system that links economies and spreads both rewards and risks,” he said.

“At a summit in London in April, leaders agreed to work together in an unprecedented way to spur global demand but also to address the underlying problems that caused such a deep and lasting global recession,” he said. “And this work will continue next week in Pittsburgh when I convene the G-20, which has proven to be an effective forum for coordinating policies among key developed and emerging economies and one that I see taking on an important role in the future.”

Obama did have some good ideas and suggestions in his speech. He spoke about how consumers should not take out loans that they cannot afford, and that loan companies need to be honest in their dealings—making sure that the consumers know what they are getting into. He called for regulation that would increase transparency and accountability in businesses.

But global regulation is not the answer for the United States. At the G-20 summit in London, Europe took the lead in regulating the financial markets. According to draft regulations obtained by Germany’s Süddeutsche Zeitung, the European Union is poised to set up three powerful supervisory bodies that could intervene when they don’t think national regulatory bodies are doing enough.

EU regulation is a tool for subduing Britain’s financial markets (see our article “How Europe’s Plans Will Destroy London” for more information). By choosing to subordinate the U.S. to a global system of regulation, Obama will put Wall Street in the same position that London is in already.

Obama may say that “The United States is leading a coordinated response to promote recovery and to restore prosperity among both the world’s largest economies and the world’s fastest growing economies,” but in reality, Europe is in the lead.

The G-20 meeting established the Financial Stability Board (fsb) as the eventual global regulatory body. The fsb is very much under European, and even Vatican, control. If America submits to global regulation, it will be submitting to Europe. Watch for Europe to increasingly take the lead in global finance. For more information, see our article “Financial Regulation in Prophecy!”