Paulson On Securitization: SEC to Reassess ‘Rules of the Road’

In a wide-ranging interview with Bloomberg TV yesterday immediately after President Bush’s signing of the economic stimulus bill, Treasury secretary Henry Paulson said that the Presidential Working Group on Financial Markets — including Fed chief Ben Bernanke and SEC chairman Christopher Cox — will be looking to propose changes to the securitization process. “You can’t have gone through the process we have gone through without knowing there needs to be some changes,” Paulson said. “First, we need to get through this period with as little impact as possible on our economy. And, secondly — just as importantly — we need a strong policy response.” The full interview is below. (Those reading HW via email will need to visit the site to see the video; more are available on HW’s video channel.)