Article: Administration says Federal Reserve should be given more powers to protect financial system

Treasury Secretary Henry Paulson said Thursday that the government must move quickly to give the Federal Reserve more powers to regulate the financial system, contending that this year's financial market turmoil had highlighted the need for action.

Paulson said that the central bank's powers should be expanded in the wake of the near collapse earlier this year of Bear Stearns, the giant Wall Street investment firm.

He said there was a need to consider quickly how to give the Fed the power it needs to obtain information from investment banks and the responsibility to intervene to protect the overall financial system. His comments were provided by the Treasury Department as ...

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