Daily Real Estate News | March 31, 2008Bush: More Help on Way for Home Owners
The Bush administration released over the weekend a sweeping proposal to revise regulation of financial markets.
The proposal, which will be outlined in detail April 1, will merge or eliminate some long-standing institutions like the Securities and Exchange Commission, and streamline others. The Federal Reserve would get a new role as the super cop in charge of financial-system stability. Some proposals are expected to directly address the current mortgage-risk problems.
Treasury Secretary Henry Paulson, who authored the plan, says it wouldn't necessarily prevent future financial crises.
"I don't think any regulatory system is going to change that," Paulson says. "I think we rely very, very heavily on market discipline. Having said that, I still think we need a system that is more efficient and gives us a better chance, gives us more tools to try to solve problems."
Rep. Barney Frank of Massachusetts, the Democrat who chairs the House Financial Services committee, says he found the plan encouraging. But he says that for the rest of this year, lawmakers need to devote all their energy to stabilizing the mortgage-market turmoil rather than determining broader fixes.
"It's too close to an election and it's a very major thing," he says.
Source: The Wall Street Journal, Damian Paletta, Greg Ip and Michael M. Phillips (03/31/08)