Schumer on Paulson Plan and Jackson Resignation
Press Release
Schumer on Paulson Plan and Jackson Resignation
U.S. Senator Charles E. Schumer released statements on Monday regarding Secretary
Paulson's announced blueprint for overhauling the U.S. financial regulatory system and
the resignation of Housing and Urban Development Secretary Alphonso Jackson:
Schumer on Paulson's Plan:
"This blueprint is a good foundation for updating the regulation of U.S. financial
markets. Secretary Paulson is right that unifying our regulatory system is necessary
in order to operate more intelligently and efficiently in the globalized financial
system. If anything, the Treasury plan does not consolidate redundant agencies
enough and a single regulator may be a better approach.
"But certain important pieces are not included in Secretary Paulson's
plan. And I strongly disagree with the Treasury Secretary when he says the current
regulatory framework is not at fault for the unrest troubling our economy.
The unregulated corners of our economy did much to contribute to the meltdown in
our housing market and the accompanying spillover to our financial markets. The
havoc wrought by independent mortgage brokers, who fueled the housing bubble,
and credit ratings agencies, who rubber-stamped securities with no questions asked,
certainly fueled the economic crisis we have now. The Administration's
'deregulation-above-all-else' attitude helped cause the problems we now face.
"If we focus only on consolidation -- and don't also adopt a careful, but more pro-
regulation, approach -- then we will have approached this modernizing task with too
much of a pre-Bear Stearns mindset."
Schumer on Jackson resignation:
"While he'll have to work out his problems, I appreciate the hard work Secretary
Jackson has put into the fight to save affordable housing in New York."
Sen. Schumer's also convening the first Congressional hearing with Federal
Reserve Chairman Ben Bernanke since the Bear Stearns collapse. High on the
agenda for the Joint Economic Committee hearing will be the Bear Stearns action, the
continuing housing and credit crises, possible regulatory reform, and a declining jobs
picture (among many other topics).
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