US News
US proposes massive financial regulatory overhaul
Mar 31, 2008, 16:01 GMT
Washington - The US Federal Reserve would get broad new powers of regulation over financial institutions under a proposal unveiled by Treasury Secretary Henry Paulson on Monday, in what would be the largest regulatory overhaul since the Great Depression.
The proposal is designed to better respond to market disruptions and was started before the current economic slowdown that began in the housing market and has since spilled into the wider economy.
'Our current regulatory structure was not built to address the modern financial system,' Paulson said in a speech at the Treasury Department in arguing that the Depression-era system must be updated.
The administration hopes to consolidate existing regulatory agencies into three bodies that would have oversight over all financial institutions.
The proposal would expand the Federal Reserve's role from implementing monetary policy and providing liquidity to monitoring the broader financial system.
'The Fed would have the authority to go wherever in the system it thinks it needs to go for a deeper look to preserve stability,' Paulson said.
The proposal comes after the central bank took a series of dramatic steps in the past month to bail out financial firms that have reported more than 200 billion dollars in writedowns over mortgage-backed securities.
Paulson's plan would also merge the chief market regulator, the Securities and Exchange Comission, with the Commodity Futures Trading Commission.
He said the proposals, which require Congress' approval, should not be implemented until after turmoil on US markets settles down.
'Our first and most urgent priority is working through this capital market turmoil and housing downturn, and that will be our priority until this situation is resolved,' Paulson said.
'Some may view these recommendations as a response to the circumstances of the day; yet, that is not how they are intended,' he said. 'This blueprint addresses complex, long-term issues that should not be decided in the midst of stressful situations and should not be implemented to add greater burden to a market already under strain.'
COMMENT
blog comments powered by DisqusLatest Headlines in US
- 1. Mitt Romney Addresses Tea Party Summit Pictures
- 2. Seven injured as US Navy plane crashes into apartments
- 3. At least three injured in US Navy plane crash
- 4. Khalid Sheikh Mohammed, others to face death penalty trial
- 5. Khalid Sheikh Mohammed, four others to face death penalty trial
Older Talkback
page: 1
Yes, lets let these jokers who have not pulled one thing off successfully step in and mess this up even more. From a party that has ruined the dollar, completely alienated the rest of the world, ran the debt up to a total that will be impossible to payoff, do more damage. Go home to Crawford and 'bust some brush'.
...while Hillary's campaign manager sits on the board of a defunct Mortgage investment firm and she pimps bailouts to the American public...
..who, exactly, should be cutting Brush in....Little Rock?
Maybe she can retire in White Water? I'll bet they'll make her a hell of a deal!
Lets see, who had had total control for 6 of the last 8 years? Hummmmmm, lets ponder, figure that one out and 'get back to us'.
Iraq: failure
Afghanistan: failure
Social security: failure
Health care: failure
Economy: failure
New Orleans: failure
Etc. Etc. Etc.
Big Boys don't cry pu pu pu erfect!
Iraq - success. Al queada stymied, Iran stymied, government stood up, time for us to go, neighbors protected, out side of a few squabbling tribes it's a job done!
Afghanistan - dtto. No more need to be there. Osama is in a cave dying and we can just wait him out.
Social Security - you're a little late perfect, the guy who you should have seen was Johnson, and he's dead. Bush wanted to privatize it and you'd make money. You'd know this if you could work a calculator.
Health Care - 260,000,000 people havve it, 12 million are here illegally(not our problem) another 12 million can afford it but choose not to and the rest we can buy it for anytime we decide. Perhaps the dems could think about it if they were not so busy calling each other bigots.
Economy - record tax receipts, record employment, low inflation and a housing mess Bush is not responsible for. Bet he's glad he's leaving soon, huh?
Katrina - Florida has hurricanes all the time and fixes up after - but then again, there was a Bush in charge there and not some libnazi corrupt governor and Mayor. Louisiana has traded up recently and the results show.
Next question?
SP4, you really do live in 'your own special place', devoid of all reality:
'Iraq - success. Al queada stymied, Iran stymied, government stood up, time for us to go, neighbors protected, out side of a few squabbling tribes it's a job done!'
5 years and are troops are still dying for an undefined policy, that is not described as a 'job done'.
'Afghanistan - dtto. No more need to be there. Osama is in a cave dying and we can just wait him out.'
Yes we have helped make this the largest producer of Heroin, and still have no idea where OBL is hanging out, not quite a 'job done', at least to a sane person.
'Social Security - you're a little late perfect, the guy who you should have seen was Johnson, and he's dead. Bush wanted to privatize it and you'd make money. You'd know this if you could work a calculator.'
'Bush wanted to privatize it', but he failed---failed policy genius.
'Health Care - 260,000,000 people havve it, 12 million are here illegally(not our problem) another 12 million can afford it but choose not to and the rest we can buy it for anytime we decide. Perhaps the dems could think about it if they were not so busy calling each other bigots.
Quite a response. At least 90 million people do not have insurance and I know the right wing neo-con mantra is 'they can go to any hospital and get taken care of', but this just costs all of us a lot of money. Again another failure by this inadequate administration.
'Economy - record tax receipts, record employment, low inflation and a housing mess Bush is not responsible for. Bet he's glad he's leaving soon, huh?'
I am starting to believe the nut in here that calls you a druggie. All of these claims are incorrect. Whatever happens on your watch is your 'responsibility'. This is known as accountability.
'Katrina - Florida has hurricanes all the time and fixes up after - but then again, there was a Bush in charge there and not some libnazi corrupt governor and Mayor. Louisiana has traded up recently and the results show.'
There has not been a large city in Florida that was completely flooded. Bush has failed completely to support the rebuilding this city, he has thrown money at it and hope it would stick instead of putting someone in charge that could make things happen. His HUD manager just had to retire because of the money he filtered off for his friends in the Katrina disaster, good job neo-con.
Contrary to the special little world you live in, your administration has completely and totally failed. None of the things you claims can be supported by actual facts, just right wing talking points. Only 8 more months of these jokers, thank god.
Now we probably are going to have to go to China begging for more money.
page: 1
SP4: Golly....Mar 31st, 2008 - 16:08:18
...ya can't trust Bankers...who knew?!
Report this comment