Washington (AP) Citing the crash of Bear Stearns, Treasury Secretary Henry Paulson says the government needs to bring investment houses under the kind of federal oversight that has long been given to commercial banks.
Paulson told a U.S. Chamber Of Commerce audience that the Bush administration will soon release just such a blueprint in an effort to promote a smoother functioning of financial markets.
He also said the administration will look into ways of helping struggling home owners at risk of losing their homes. But as far as some of the proposals put forth by congressional democrats, Paulson said “most are not yet ready for the starting gate.”
Paulson also rejected the need for a “system-wide solution” to deal with homeowners who have no equity in their home, which is when the money owed on a house is more than the home is worth.