Kansas Insurance

 The revision of financial regulations, that the United States Treasury Secretary Henry Paulson unveiled Monday is woefully inadequate and little promotion of stability of the financial centre, said one of the most vocal critics of RTTNews.

Barbara Roper, director of investor protection on the Consumer Federation of America, said that the Bush administration has little plan to help, whether by millions of Americans, including the exclusion or help investors The financial turmoil eat into their retirement accounts.

“Rolling this plan in the midst of a financial crisis is to say that (Hurricane), the victims of Katrina beaches on rooftops in New Orleans, ‘Do not worry, we have a plan, if you have a few years of a - Do we have a plan for our major Federal Emergency. ”

The nation’s current financial penalty, she said, is the product of a failure of regulatory standards.

“We have no wind in this chaos, because gaps in the legal structure,” she said. “That is the regulatory authorities, to the extent that such blind belief that the market is always right and they are deaf to warnings about the dangers of Subprime mortgage market, it has been blind to the fact that securitisation is not so much to reduce the risk, how it works for him in every corner of the market, and it is not ready the use of the authority available to Internet users. ”

The ordinance revision, called Blueprint for a modernized Financial Regulatory Structure, has been on the table to develop month, and many of its provisions must Congressional implement the agreement.

“This will not be easy, or a little effort,” said Paulson in the department of the treasury Monday. “With few exceptions, the recommendations of the Blue Print should not and shall not be implemented until the current market situation, the difficulties are past.

It is planned, aimed at reducing the financial rules more effective. This is not about the current slowdown in housing or credit Crunch, but it is designed for similar economic suffering in the future.

“A strong financial system is essential - not Wall Street, not for the banks but also for the Americans,” said Paulson during the revelation of the plan Monday.

A central provision, insurance can pay by the federal government rather than individual states. Paulson said it was a greater flexibility of the insurer for prices and the end of their current practice, negotiations with different countries so that the quota increases.

“Our strong legal structure hampers our competitiveness,” said Paulson. “A state regulation based on the system is cumbersome. It allows price controls, market distortions.”

National Association of Insurance Commissioners President Kansas Insurance Commissioner Sandy Praeger and, said in a statement that states Stripage their regulatory powers regarding the insurance industry is a bad idea.

“Of course, the current climate of reduced regulation and less control has meant that the riots, the large sector of the economy of our nation,” she said. “We agree that the measures taken by the federal government, the risks to the system for a long time. We agree that the federal government needs to strengthen its financial rules to transform the house, but they need for insurance ‘House’ alone. ”

The plan should also establish an agency in the conduct and Consumer Protection, which has more functions now the responsibility of the US Securities and Exchange Commission.

“The creation of a new agency flow-chart is not to do,” said Roper of the Consumer Federation.

Among other things, the 218-page plan Congress calls for the creation of a federal commission on the Mortgage Origination recommended minimum standards for granting a licence in mortgages.

Another part of this plan is to merge the functions of the Office of Thrift Supervision and the Commodity Futures Trading Commission in other agencies. The Bush administration would also be of the Federal Reserve, more power to protect the stability of the American financial system.

Pending House Financial Services Committee Chairman Barney Frank is preparing its own review of the regulations. The Massachusetts Democrat Paulson called the proposal a “positive step forward, but the plan is not to give the Federal Reserve, the authority he needs to markets in the United States in check.

His proposal aimed at stabilizing FHA Housing & Home Ownership retention law that would allow the Federal Housing Administration to insure and ensure that the mortgages were refinanced by the lender.

For his part, Senate Banking Committee Chairman Christopher Dodd, D-Conn., Paulson What is called the plan a “Wild Pitch - it’s not even in the vicinity of the area of the strike”, which is necessary to correct the current crisis mortgage every corner of the nation.

“The failure of the administration to use the tools they have to give over the years, with very practical in the sense that, that this problem,” he told reporters.

Paulson, the former boss of Goldman Sachs, said he refused to some Democrats’ criticism that the current unrest is the proceeds babes government market surveillance.

“I do not think it is fair or correctness of our legal structure responsible for the revolt current market,” he said. “I am not sure that more regulation is the answer, or even more effective than regulation can prevent that periods of financial market stress that, obviously, occur every five to 10 years.”