US Treasury announces overhaul
Updated
The US Treasury has unveiled its blueprint for the biggest overhaul of regulation in the financial sector since the 1930s.
The Treasury Secretary, Henry Paulson, says the plan will give the Federal Reserve more powers to protect the stability of the entire financial system.
Under the proposals, the Fed would be able to examine the books of any financial institution deemed to potentially threaten the stability of the financial system.
Secretary Paulson says the reforms address complex long term issues and are not a direct response to the current market turmoil.
