Paulson Backs Greater Fed Oversight over Securities Industry

Treasury Secretary Paulson said that the Fed should have greater oversight over securities firms since it is now lending money to them.  He becomes the first top administration official to endorse the idea since the Fed stepped in to bail out Bear Stearns.  WSJ, Paulson Endorses New Clout For Fed Over Securities Firms.  In the face of criticism that the SEC did not act quickly enough to address Bear Stearns' problems, Christopher Cox said that the firm's troubles resulted from lack of market confidence, not liquidity.  WSJ, SEC Role Is Scrutinized In Light of Bear Woes.