The proposals from the President’s Working Group on Financial Markets will “talk specifically about the lessons learned” from capital-market turmoil, Paulson said after a speech in Arlington, Virginia, to the National Association for Business Economics.
The four-member working group that Paulson chairs includes Fed Chairman Ben Bernanke and the heads of the Securities and Exchange Commission and Commodity Futures Trading Commission. It will issue recommendations on rules to ensure greater transparency on homeowner lending and loan securitization, Paulson said.
So it appears to be operational.
Do they have motivation to stop crashes? I’d say that is a resounding yes! Remember, they are franticly working to bring confidence back into the markets.
Do they have a mechanism? Between hedge funds and derivatives, probably, IMO. I’m not that savvy on the dark arts of these “market tools”, however, from other articles I have read they would be the main culprits.
If they do, do it, I doubt they do it frequently, IMO.
