Handicapping the Blueprint

Which parts of Paulson’s ambitious regulatory reform are most likely to be enacted?

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While it would be nearly impossible for all aspects of Treasury Secretary Hank Paulson's ambitious "Blueprint for Regulatory Reform" to be enacted, it's certain that some of them will. So which parts of the plan are most likely to make the cut?

From today's American Banker:

In interviews with analysts, academics, regulators, bankers, and other industry representatives, there was widespread agreement that there is likely to be increased oversight of the mortgage market, including nonbank originators and brokers, in the near term. Looking further ahead, many saw growing momentum for an expansion of the Federal Reserve Board's powers to handle systemic market risks, a drive to merge the bank and thrift charters, and some limited regulatory consolidation.

But few—other than Treasury officials—said there was much chance for more radical changes, including the creation of a single federal prudential regulator, the elimination of the federal credit union charter, and stripping direct bank supervision from the Federal Deposit Insurance Corp.

The full article is here.

Paulson, Henry
Treasury Department