Monday, March 31, 2008

Treasury Rolls Out Overhaul of Financial Regulators

The Paulson Plan has finally been revealed, but it may just be much ado about nothing. No one expects anything to happen in a presidential election year, and Secretary Paulson acknowledges that fact. He also pointed out that this overhaul plan is not a reaction to current market conditions or financial problems, but is something that has been in the works for months.

There is a lot to digest in the Plan, which consumes 218 pages, but the key points for the securities industry are the merger of the SEC and the CFTC, the vesting of regulatory oversight in the fed, and the inclusion of hedge funds and private equity funds in the regulatory umbrella; although in a very limited fashion.

The Treasury Department has created a fact sheet regarding the plan at its web site.
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