Blueprint To Modernize The U.S. Financial Regulatory Structure

On March 31, 2008, the U.S. Department of the Treasury issued its "Blueprint for a Modernized Financial Regulatory Structure," which was developed before the current financial turmoil. In fact, in announcing the Blueprint, Treasury Secretary Paulson stated that its recommendations are not intended as a response to current conditions and, with few exceptions, would not be implemented until after the present market difficulties subsided.

The Blueprint reflects an objectives- or principles-based approach to regulation and presents a series of short-, intermediate- and long-term recommendations for broad-ranging reform of the U.S. financial regulatory structure. The short-term recommendations propose changes to improve regulatory coordination and oversight immediately, including creating a new federal commission for mortgage origination to evaluate the adequacy of each state system for regulating