Revamp Proposed for Financial Regulators

Monday March 31, 6:56 pm ET
By Jeannine Aversa, AP Economics Writer Proposed Financial Overhaul Puts Fed in Charge of Market Stability; No Fix for Present Woes WASHINGTON (AP) -- It's a Herculean task: revamping a financial regulatory system dating back to the Civil War to deal with 21st century crises imperiling the country.

Under an ambitious Bush administration plan, the Federal Reserve would take on the unwieldy role of uber cop in charge of financial market stability. Other regulatory agencies could see their influence diminished.

The proposal won't fix the host of economic and financial problems that threatens to plunge the United States into a deep recession, but it might help guard against future troubles. It would take years and a lot of political wrangling -- in Congress, on Wall Street, in statehouses and elsewhere -- to implement all the changes envisioned.