From Paulson’s testimoney to the Senate Banking Committee:
When we get through this difficult period, which we will, our next task must be to address the problems in our financial system through a reform program that fixes our outdated financial regulatory structure, and provides strong measures to address other flaws and excesses. I have already put forward my recommendations on this subject. Many of you also have strong views, based on your expertise. We must have that critical debate, but we must get through this period first.
It is not the structure of the financial regulatory system that is at fault. It is the structure and mission of the Federal Reserve. Any reform that does not take that into account will not work in the long run.