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| Version 0 | Version 1 |
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| US plans finance system overhaul | US plans finance system overhaul |
| (about 2 hours later) | |
| The US Treasury is set to reveal its blueprint for the biggest overhaul of regulation of the financial sector since the 1930s. | The US Treasury is set to reveal its blueprint for the biggest overhaul of regulation of the financial sector since the 1930s. |
| Critics have said that the credit crunch and resultant market turmoil made a strong case for change. | Critics have said that the credit crunch and resultant market turmoil made a strong case for change. |
| But Treasury Secretary Henry Paulson is expected to reject claims that existing regulations have led to the turmoil. | But Treasury Secretary Henry Paulson is expected to reject claims that existing regulations have led to the turmoil. |
| The government says the proposals are an effort help US firms become more competitive in the global economy. | The government says the proposals are an effort help US firms become more competitive in the global economy. |
| "Despite the fact that there will be a temptation to view this through a lens of what is happening now in credit markets, this has been a process that has been going on for a year," said Treasury Assistant Secretary David Nason. | "Despite the fact that there will be a temptation to view this through a lens of what is happening now in credit markets, this has been a process that has been going on for a year," said Treasury Assistant Secretary David Nason. |
| "These are very complex issues that require a serious amount of debate." | "These are very complex issues that require a serious amount of debate." |
| New powers | New powers |
| The plans are expected to propose giving sweeping powers to the Federal Reserve - enabling it to tackle the kind of turmoil that is currently hitting financial markets. | The plans are expected to propose giving sweeping powers to the Federal Reserve - enabling it to tackle the kind of turmoil that is currently hitting financial markets. |
| Under the proposals, the Fed would become "market stability regulator" - allowing it to examine the books of any financial institution deemed to potentially threaten the stability of the financial system. | Under the proposals, the Fed would become "market stability regulator" - allowing it to examine the books of any financial institution deemed to potentially threaten the stability of the financial system. |
| It is also expected that the overhaul will see a new organisation set up to take over the role of the five separate banking regulators. | It is also expected that the overhaul will see a new organisation set up to take over the role of the five separate banking regulators. |
| A body to regulate business conduct and consumer protection is also likely to be proposed. | A body to regulate business conduct and consumer protection is also likely to be proposed. |
| Among other measures expected is the creation of a commission to establish stricter criteria for firms involved in the mortgage market. | Among other measures expected is the creation of a commission to establish stricter criteria for firms involved in the mortgage market. |
| The review into the sector began early in 2007 after the financial services industry complained that over-regulation from Washington meant US firms were not as globally competitive as they could be. | The review into the sector began early in 2007 after the financial services industry complained that over-regulation from Washington meant US firms were not as globally competitive as they could be. |
| Before travelling to Europe, President George W Bush said that he wanted congress to pass several pieces of legislation which he saw as "vital priorities". | |
| These included housing law which would enable more homeowners who were battling to meet mortgage payments to refinance their loans. |