Senator Menendez Statement On Paulson Financial Industry Oversight Plan

Member of Senate Banking Committee says it is a step in the right direction but does not go nearly far enough

March 31, 2008 -- WASHINGTON – Today, Treasury Secretary Henry Paulson announced his plan to increase oversight over financial markets. U.S. Senator Robert Menendez (D-NJ), a member of the Banking Committee, released the following statement on the plan:

“Americans just have to look at their monthly bills these days to know that accountability for financial markets must be tighter. The current crisis arose because a little-understood market was irresponsibly allowed to run wild. Unfortunately, accountability for the types of complex products that are in dire need of scrutiny is absent in Secretary Paulson’s plan. We cannot mistake this proposal as a response that gets us out of our current crisis. Rather, this is the first step in what must be a comprehensive reform process that will go well beyond this proposal. The end result should be action to solidify our markets, increase oversight where it is lacking, and improve our regulatory framework so that we do not see a repeat of the current crisis.

“The key is not just to rearrange who does what, but to ensure that everyone is doing their job instead of being asleep at the switch. Successful reform will take more than musical chairs – it will mean shining the light on practices that have existed in the dark and ensuring that the federal government can take action when necessary to protect the American people.”

Source: Senator Robert Menendez

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