Paulson addresses bailout, economy at Reagan Library
Treasury Secretary Henry Paulson advanced his views on financial system regulatory reform during a Nov. 20 speech at the Ronald Reagan Presidential Library in Simi Valley.
Paulson, who has been under fire for his handling of the $700 billion credit market bailout, called for a market stability regulator that “would have the authority to review any systemically important financial company and to look for problems anywhere in the financial system.”
He said views are based on his belief that “our entrepreneurial nation must continue to foster prudent risk taking, while not rewarding failure or encouraging recklessness.”
Regarding the proposed $25 billion auto industry bailout, Paulson said it “doesn’t do any good to put money into it if there isn’t a clear path to viability.”
Paulson also defended his handling of the financial crisis.
“As I assess our current situation, I believe we have taken the necessary steps to prevent a financial collapse,” he said. “The steps that we’ve taken have been pretty strong … we understand how important the stability of our financial system is, and stability is our top priority here.”
His speech was part of a series of high-profile “Reagan Lectures” featuring luminaries such as ex-Federal Reserve Chairman Alan Greenspan.