Originally published by the Voice of America (www.voanews.com).
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March 30, 2008

Bush Administration Proposes Sweeping Overhaul of Financial Industry
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Regulations
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http://enews.voanews.com/t?ctl=1BB5A72:A6F02AD83191E1606361678EAA2B46B170AD7039DCD7B7E4& Plan would give
broad new powers to US central bank to ensure market stability





United States Federal Reserve Building is seen from the air over
Washington, D.C. (File)

The Bush administration is proposing a sweeping overhaul of the way
the U.S. financial industry is regulated, giving broad new powers to
the Federal Reserve - the U.S. Central Bank - to ensure market
stability.

Treasury Secretary Henry Paulson will formally unveil the proposal on
Monday.

The plan gives the Federal Reserve the power to examine the books of
financial institutions that are deemed a threat to the country's
overall economic stability.

The proposal also gives the Federal Reserve the power to require
financial institutions to take corrective action to decrease or avoid
risk.

The proposal also consolidates some of the government's regulatory
agencies, which experts say failed to prevent the current subprime
mortgage meltdown and credit crisis.

The new rules must be approved by Congress.

During his weekly radio address Saturday, President Bush expressed
confidence an economic stimulus package will help energize the slowing
economy, but Democrats say more help is needed.

Mr. Bush said incentives for businesses to invest in new equipment and
individual tax rebates will give the economy a boost.

In the Democrats' weekly radio address, Illinois Congressman Bill
Foster said more tax relief is needed for middle class families.

Foster said Democrats are working on a more comprehensive plan to help
families avoid foreclosure and give cities a chance rehabilitate
foreclosed home.Some information for this report was provided by AFP,
AP and Reuters.


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