And the process of looking at our financial competitiveness continues, as the Wall Street Journal reports — Paulson Details Plan to Review U.S. Regulatory System:
Treasury Secretary Henry Paulson Wednesday unveiled the next phase in his plan to improve the competitiveness of U.S. capital markets, which some analysts worry are falling behind international competitors.
Wednesday’s announcement calls for a “modernized regulatory structure,” mutual recognition of comparable international regulatory regimes and the development of voluntary best practices for asset managers and investors in hedge funds, among other initiatives.
“To maintain our capital markets’ leadership, we need a modern regulatory structure complemented by market leaders embracing best practices,” Mr. Paulson said in a statement. Mr. Paulson is formally announcing the review at The Wall Street Journal’s “Deals and Deal Makers Conference” in New York.
With regard to the regulatory overhaul — which should produce a “blueprint for reforms” from Treasury early next year — possible changes could include merging regulators with overlapping responsibilities, such as the Office of the Comptroller of the Currency and the Office of Thrift Supervision.
Apparently, few details were available.
Modernizing the regulatory structure sounds fine – as long as it sticks to that task. My only concern, as stated many times before, is that we don’t misdiagnose the problem and end up with a regulatory system that is worse than before.