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 homeowners 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.