Speaking of flying monkeys...
"Even investors got some stern advice. Paulson's remarks... suggested
that investors should not just rely on the rating agencies, but do
their own due diligence."
in other words, kids, it's "FYDYODD"
Paulson seeks to restore credit faith
============================
Treasury chief pushes committee's proposal to increase oversight of
mortgage originators and changes to rating agencies.
CNNMoney.com - March 13, 2008
NEW YORK -- Treasury Secretary Henry Paulson outlined a broad-based
series of proposals Thursday aimed at restoring faith in the mortgage
business and shoring up the financial services sector that has been
hard hit by the ongoing credit crisis.
Paulson's recommendations, which were produced by the President's
Working Group on Financial Markets, were detailed in a speech he gave
in Wa****ngton.
"I believe today's recommendations put us on the path towards more
transparent, better-functioning, and better-managed markets," Paulson
said in prepared remarks.
Among the biggest points of the plan were calls for stronger state and
federal oversight of all mortgage originators, and establi****ng a
nationwide licensing standard for mortgage brokers.
Credit rating agencies, which have borne some of the blame for the
credit crisis for not warning investors who bought subprime mortgage
securities, were encouraged to practice greater due diligence.
The plan also urged major financial institutions, which packaged and
sold risky home loans, to improve their internal methods for *****sing
investment risk.
Even investors got some stern advice. Paulson's remarks, which were
likely targeted at the large pension funds and other institutional
investors who got burned after buying these risky loans from the
banks, suggested that investors should not just rely on the rating
agencies, but do their own due diligence.
The recommendations, Paulson warned, are simply a starting point.
"Although we haven't yet worked completely through this period of
market turmoil, and that is our highest priority today, it is not too
early to suggest appropriate policy responses," said Paulson.
Find this article at:
http://money.cnn.com/2008/03/13/news/economy/paulson/?postversion=2008031311
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