From: JDSupra Business Advisor
‘Rationalizing’ financial regulation and the 2008 Paulson Plan
However, the phrase may sound familiar, because similar phrases were used in a U.S. Treasury Department report issued in March 2008, at the end of the George W. Bush administration. That report, styled a “Blueprint for a Modernized Financial Regulatory Structure,” became commonly known as the “Paulson Plan” (in honor of then-Secretary of the Treasury, Henry Paulson), and it used the phrases “rationalizing the chartering of financial institutions” and “rationalization of federal supervision over state-chartered banks.” The Paulson Plan did not get as much attention as it might have, because its newsworthiness was quickly overwhelmed by financial crisis news as 2008 progressed.
The Paulson Plan used the term “rationalizing” in proposing a variety of financial regulatory changes for consideration that would have a major impact on the U.S. dual banking system and bank charter choices currently available to banking institutions in the U.S., including: