Paulson didn’t get the Free Market Memo I guess…

Paulson Calls for Broad Look at Whether Investment Houses Should Be Under Federal Oversight

WASHINGTON (AP) — The crash of Wall Street’s once mighty Bear Stearns underscores the need to bring investment houses under the kind of federal oversight that has long been given to commercial banks, Treasury Secretary Henry Paulson said Wednesday.

“This latest episode has highlighted that the world has changed as has the role of other nonbank financial institutions and the interconnectedness among all financial institutions,” Paulson said. “These changes require us all to think more broadly about the regulatory and supervisory framework that is consistent with the promotion and maintenance of financial stability,” he added