Emergency Economic Stabilization Act

Paulson Changes the Game, Proposes Sweeping Financial and Mortgage Reform 

Treasury Secretary Henry Paulson unloaded a doozy on the financial and mortgage markets Monday morning, suggesting sweeping reform to the broader financial system — and, in particular, suggesting massive changes to the regulatory framework for mortgage banking. The recommendations come on the heels of an unprecedented bailout of Bear Stearns, and historic market liquidity measures taken in the past few weeks. The changes are the largest proposal yet by officials looking to deal with the fallout from a massive mortgage and housing crisis that has shaken the U.S. financial system to its core.