Paulson Calls For Fed Regulation of U.S. Financial Markets

Washington, D.C.–Treasury Secretary Henry Paulson is pushing for the Federal Reserve to play a bigger role in monitoring the U.S. financial system, said Thursday.In remarks released before Paulson’s speech at a luncheon in Washington, D.C. Thursday, Paulson encourages the country to overhaul the regulation of its financial system as soon as possible.His plan–which would appoint the Fed as a type of moderator, enabling the central bank to intervene if the markets become endangered by anything similar to Bear Stearns’ March breakdown–is the biggest move to change Wall Street since the Great Depression, said.  To successfully oversee the financial markets, the Fed would need additional access to information from financial companies and the ability to step in as needed, Paulson said.