Weekly News via Email
   Set as homepage | Add to favorites | Customer Service | Subscribe Now | Place an Ad | Contact Us | Sitemap Monday, 02.19.2018
News Archive
Su Mo Tu We Th Fr Sa
 1  2  3  4  5
 6  7  8  9  10  11  12
 13  14  15  16  17  18  19
 20  21  22  23  24  25  26
 27  28  29  30
Online Extras
Site Services
Around Bend
Outdoor Fun
Travel Info
Shop Local

Members Of

Poll: Today's Live Poll
Email to a friend | Print this | PDF version | Comments (0 posted) 
  Blogger |   del.icio.us |   digg |   newsvine

Apr 04,2008
From Paulson, a start
by The Milwaukee Journal Sentinel

The Bush administration's blueprint for revamping the nation's financial system is a tacit admission that the system is broken, but the plan rolled out Monday by Treasury Secretary Henry Paulson fails to make all the needed repairs. Still, it's a good place to start, and some of the recommendations deserve immediate attention from Congress.

The plan would consolidate the hodgepodge of regulatory agencies that date as far back as the Civil War while adding new duties for the Fed and creating important new licensing standards for mortgage origination.

It has been clear for months, as Paulson acknowledged over the weekend to The Wall Street Journal, that complex financial instruments had outstripped the ability of regulators to respond. The financial system is facing its most severe credit crisis in at least a generation, triggered by the collapse of the mortgage-backed securities market. As Paulson put it: "Everywhere I look, I see the plumbing hasn't changed to meet the realities."

His plan would give the Federal Reserve more power to preserve the integrity of the financial system as a whole, create a super agency to oversee business conduct and consumer protection and eliminate the Office of Thrift Supervision and the Commodity Futures Trading Commission.

But the plan is flawed in some fundamental ways. While it gives new limited authority to the Fed to regulate investment banks, it strips the Fed of some of its authority over depository institutions. While hedge funds and private equity firms would fall under federal oversight, that oversight would be minimal at best. And even though improved mortgage broker oversight should be welcomed, regulation of the industry would remain a patchwork affair.

Furthermore, the plan doesn't address current realities. We remain convinced that a change in bankruptcy law to allow judges to modify home mortgages remains the most efficient, least costly fix for individuals.

Reprinted from The Milwaukee Journal Sentinel – CNS.

975 times read

Related news
More regulation, please by The St. Louis Post-Dispatch posted on Apr 04,2008

Go slow on overhauling financial regulations by The Detroit News posted on Apr 04,2008

Don't go overboard by The San Diego Union-Tribune posted on Apr 04,2008

Credit crunch: Regulating chaos by the St. Louis Post-Dispatch posted on Mar 28,2008

Another small step by The Milwaukee Journal Sentinel posted on Feb 15,2008

Did you enjoy this article? Rating: 5.00Rating: 5.00Rating: 5.00Rating: 5.00Rating: 5.00 (total 13 votes)

Market Information
Breaking News
Most Popular
Most Commented
Featured Columnist
Horoscope Guide
Aquarius Aquarius Libra Libra
Aries Aries Pisces Pisces
Cancer Cancer Sagittarius Sagittarius
Capricorn Capricorn Scorpio Scorpio
Gemini Gemini Taurus Taurus
Leo Leo Virgo Virgo
Local Attractions
Bend Visitors & Convention Bureau
Bend Visitors & Convention Bureau

Mt. Bachelor Resort
Mt. Bachelor Resort

Les Schwab Ampitheater
Les Schwab Ampitheater

Deschutes County Fairgrounds
Deschutes County

Tower Theatre
Tower Theatre

The High Desert Museum


Deschutes County

  Web    BendWeekly.com
© 2006 Bend Weekly News
A .Com Endeavors, Inc. Company.
All Rights Reserved. Terms under
which this service is provided to you.
Please read our Privacy Policy. Contact us.
Bend Weekly News & Event Guide Online
   Save the Net
External sites open in new window,
not endorsed by BendWeekly.com
Subscribe in NewsGator Online
Add to Google Add to MSN Add to My AOL
What are RSS headlines?