From FT.com / World / US & Canada
The Bush administration on Monday called for a complete overall of an outdated US financial regulatory system, but stressed that “more regulation” was the not the answer to current or future financial crises.
Hank Paulson, Treasury secretary, laid out the details of a “blueprint” for reform, which calls for a streamlined system that has fewer regulators and addresses some of the gaps exposed by the current crisis.
But he said: “I do not believe it is fair or accurate to blame our regulatory structure for the current market turmoil… I am not suggesting that more regulation is the answer, or even that more effective regulation can prevent the periods of financial market stress that seem to occur every five to 10 years.”
The Treasury has been working on the proposal since March 2007 in an effort to bolster US capital markets amid growing competition from overseas. But the recent turmoil in the financial markets added urgency to its efforts and raised the political stakes.




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