"Today, Secretary of the Treasury Hank Paulson has offered a balanced and thoughtful approach to modernizing our financial system.  Secretary Paulson rightly recognizes that we can help mitigate future market turmoil with smarter regulation, but that we must resist the growing political pressure to rush headlong into ill-considered regulations that would stifle innovation, drive jobs overseas, and hurt America's economic health.   

"Our nation's confusing and duplicative regulatory structure has become an increasingly serious drag on our global competitiveness.  Several reports, including the one that Senator Schumer and I issued in January 2007, have called for actions that would create a more efficient, effective, and streamlined regulatory environment. Today, the Treasury Department has taken some positive steps in that direction.  I welcome its proposals and hope that as they evolve, Treasury will move not just to modernize our regulatory institutions but also their approach, by moving to a principles-based process.  Treasury's proposals also reflect other key aspects of the policies that I have supported, including the modernization of financial services charters. 

"While Treasury's report is an important step forward, we must ensure that whatever bills emerge in Congress do not become feeding troughs for lobbyists.  In addition, as Congress focuses on financial regulation, it must not lose sight of the fact that strengthening the global competitiveness of our economy requires reforms in other areas too, especially immigration and securities litigation.  All of these issues require members of Congress to reach across the aisle and craft carefully considered solutions.  In the weeks and months ahead, I hope they will put aside election year politics and work together to strengthen our economy."