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Report: Reorganize regulation of financial system

Treasury plan would eliminate chartered thrifts

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The Bush administration has put forward a sweeping plan for reorganizing the regulation of the financial system that would include national licensing standards for mortgage brokers and the elimination of federally chartered thrifts. Many of the major aspects of the plan unveiled today by Treasury Secretary Henry Paulson would require congressional approval, and are not likely to be achieved during President Bush's final year in office, Paulson acknowledged. The plan addresses "complex, long-term issues," Paulson said, that "require thoughtful discussion and will not be resolved this month or even this year." In a statement, Rep. Barney Frank, D-Mass., called the plan a "contribution to a profound national discussion that cannot be concluded in the months before the election." But Frank said Paulson had performed an "important service" by "rejecting the argument for the status quo." The current regulatory system is so com...