From The Wall Street Journal: "The Bush administration's plan to remodel the patchwork system of U.S. financial regulation, built piecemeal since the Civil War, is the biggest salvo in what will be a long-running debate about the role of government in financial markets. In a sweeping proposal, Treasury Secretary Henry Paulson slaughtered
a number of Washington's sacred cows, proposing to merge or eliminate institutions of long standing including the Securities and Exchange Commission, and to create a controversial new role of super cop for the Federal Reserve."
The paper then boils the issue down into three (extremely broad) bullet points, so we can all understand what's at stake:
- What's New: The Fed would get a new role as the super cop in charge of financialsystem stability under Treasury Secretary Paulson's plan.
- The Concern: It's hard for anyone to anticipate a crisis in advance, as regulators have learned recently.
- The Gamble: That a streamlined bureaucracy will be more effective than the current regulatory patchwork.
More information about the reform proposals can be found at www.ustreas.gov.