Paulson says new financial rules needed
JEANNINE AVERSAAP NewsThursday, March 27, 2008
If big Wall Street investment houses are allowed to run to the Federal Reserve for emergency lending, they must face stepped-up regulation, Treasury Secretary Henry Paulson declared Wednesday.
The demise of once-mighty Bear Stearns proves "the world has changed," underscoring a need for the government to adapt, too, he said.
The Bush administration will soon put forth an oversight blueprint in an effort to promote smoother functioning of financial markets, Paulson said in a speech to the U.S. Chamber of Commerce.
The implosion of investment house Bear Stearns and fears that others could be in jeopardy have sent a tremor rippling through trading rooms of Wall Street, the corridors of official Washington and the living rooms of many Americans. The situation has raised new questions about whether regulations need to be revamped to better keep up with the world of modern finance and to avert a repeat of the chaos now confronting the country.
Commercial banks, a national financial bedrock, are subject to regulations, including bank examinations and rules for submitting detailed financial information, to help regulators gauge their safety and soundness.
JEANNINE AVERSAAP NewsThursday, March 27, 2008
If big Wall Street investment houses are allowed to run to the Federal Reserve for emergency lending, they must face stepped-up regulation, Treasury Secretary Henry Paulson declared Wednesday.
The demise of once-mighty Bear Stearns proves "the world has changed," underscoring a need for the government to adapt, too, he said.
The Bush administration will soon put forth an oversight blueprint in an effort to promote smoother functioning of financial markets, Paulson said in a speech to the U.S. Chamber of Commerce.
The implosion of investment house Bear Stearns and fears that others could be in jeopardy have sent a tremor rippling through trading rooms of Wall Street, the corridors of official Washington and the living rooms of many Americans. The situation has raised new questions about whether regulations need to be revamped to better keep up with the world of modern finance and to avert a repeat of the chaos now confronting the country.
Commercial banks, a national financial bedrock, are subject to regulations, including bank examinations and rules for submitting detailed financial information, to help regulators gauge their safety and soundness.
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