LyrArc Article Gist
The recommendations of the President's Working Group on Financial Markets to be given today by Treasury Secretary Paulson. The Working Group includes the heads of the Federal Reserve and the Federal Reserve bank of New York, and the heads of SEC ad CFTC. The aim is to prevent the kind of crisis in mortgages and credit from happening again. There are other private-sector advisory panels also at work with Treasury with one focusseds on credit rating firms and Congress is working on this also. Much of it does not require legislation and some of it can be implemented immediately. Regulators are asked to work more closely with the Financial Accounting Standards Board to revisit accounting issues and make sure exposures are properly reflected.They are asked to make their independent assessments and not to rely on credit raings firms. Fannie Mae and Freddie Mac are asked to work on raising more capital and reduce dividends to conserve capital. New licensing standards are supported for mortgage brokers. The question is whether new storms in the economy and credit and financial markets will make this look not enough considering the situation facing the economy and financial markets.