Reply #16: Paulson in no rush for new market rules

[ozymandius]

PARIS (AP) -- U.S. Treasury Secretary Henry Paulson said Monday that regulators should not rush to impose new rules on financial markets in reaction to the recent credit crisis.

Paulson, speaking after a meeting with French Finance Minister Christine Lagarde, said the United States and France were working closely to monitor markets as financial services companies adapt to a lower appetite for risk.

Financial market turbulence "will take some time" to work through, and regulators must ensure that any new restrictions or requirements for financial services firms do not stunt innovation, Paulson told a news conference.

-cut-

He insisted that the U.S. economy, and the entire world economy, have benefited from innovative financial products.

The credit crunch began with rising defaults in the United States on subprime mortgages, home loans provided to borrowers with weak credit. Those problems have since spread to other lending areas and have also roiled global financial markets, with banks and other lenders tightening standards for loans to consumers and businesses.

http://money.cnn.com/2007/09/17/markets/bc.apfn.eu.fin.france.us.financial.ap/index.htm?postversion=2007091706

Paulson's massive untaxed wealth has driven him batty.