US to reform finance sector
Updated
The United States is embarking on sweeping reforms of its financial sector in an effort to restore confidence after the housing mortgage crisis that's rocked global stock markets.
The plan will change how the US government regulates thousands of businesses from the nation's biggest banks and investment houses down to local mortgage brokers.
It would give the Federal Reserve more power to protect the stability of the entire financial system.
But the Treasury secretary, Henry Paulson, says the reforms are not a response to the current market turmoil.
"This blueprint addresses complex, long term issues that should not be decided in the midst of stressful situations and should not be implemented to add greater burden to a market already under strain," he said.
Many of the changes will have to be passed by the US Congress.
