Treasury Secretary Proposes Financial Overhaul

Treasury Secretary Proposes Financial Overhaul
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Washington (AP) The Bush administration is out with a 218-page plan to overhaul financial regulation. It contains the most far-reaching changes since the stock market crash of 1929 and the Great Depression that followed.

Treasury Secretary Henry Paulson unveiled the plan. He says a strong financial system is important not just for Wall Street, but also for working Americans.

The plan would give the Federal Reserve more power to protect the stability of the entire financial system. It would merge day-to-day bank supervision into one agency, down from five.

It would also create one super agency in charge of business conduct and consumer protection.

There are recommendations to set licensing standards for mortgage brokers and to establish federal regulation of the insurance industry.

The plan needs congressional approval for its biggest changes. It is designed to trim a hodge-podge collection of overlapping jurisdictions that date back to the civil war.