Washington Post (03/13/08) P. D1; Cho, David
The U.S. Treasury will issue a report from the President's Working Group on Financial Markets spelling out the causes of the subprime mortgage crisis and pointing to the need for revisions in financial regulations, but the agency will not issue specific recommendations right away. The Working Group's report is the result of seven months' of collaboration involving Treasury Secretary Henry Paulson Jr., Federal Reserve Chairman Ben Bernanke and Securities and Exchange Commission (SEC) Chairman Christopher Cox. Observers believe the report will spark changes in the mortgage securitization process and the practices of credit rating firms. However, the Treasury does not have the authority to issue new rules governing credit ratings firms and will have to go through Congress or the SEC. In a September 2007 interview, Treasury assistant secretary for economic policy Phillip Swagel said, "There will probably be a lot more scrutiny, in a sense, a lot more analysis being done of the underlying credit."
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