RATM99
03-31-2008, 06:06 PM
Treasury Secretary Henry Paulson proposed a set of sweeping changes on Monday aimed at modernizing the nation's financial system in what could herald the biggest regulatory overhaul of Wall Street since the Great Depression.
The plan, which would broadly expand the Federal Reserve's powers, comes as concerns about the housing crisis and its fallout in the financial system continues to fuel calls for change in Washington. The Paulson changes, if enacted, would be largely invisible to consumers but would drastically alter how the financial services industry is regulated.
Among the plan's proposals is one that would grant additional powers to the Federal Reserve, essentially transforming it into a regulator that would stabilize financial markets.
Under the Paulson plan, the Fed would essentially serve as a financial markets moderator, stepping in if the nation's markets were again threatened by an episode like the near collapse of Bear Stearns.
The plan would also give the central bank greater oversight of investment banks and previously unregulated entities like hedge funds and private equity firms that have wielded growing influence in financial markets in recent years.
http://money.cnn.com/2008/03/31/news/economy/paulson_regulation/index.htm?postversion=2008033115
Looks like this was the plan the whole time.
The plan, which would broadly expand the Federal Reserve's powers, comes as concerns about the housing crisis and its fallout in the financial system continues to fuel calls for change in Washington. The Paulson changes, if enacted, would be largely invisible to consumers but would drastically alter how the financial services industry is regulated.
Among the plan's proposals is one that would grant additional powers to the Federal Reserve, essentially transforming it into a regulator that would stabilize financial markets.
Under the Paulson plan, the Fed would essentially serve as a financial markets moderator, stepping in if the nation's markets were again threatened by an episode like the near collapse of Bear Stearns.
The plan would also give the central bank greater oversight of investment banks and previously unregulated entities like hedge funds and private equity firms that have wielded growing influence in financial markets in recent years.
http://money.cnn.com/2008/03/31/news/economy/paulson_regulation/index.htm?postversion=2008033115
Looks like this was the plan the whole time.