The biggest financial reform since the Greapression

Treasury Secretary secretary Henry Paulson proposes increasing the role of the Federal Reserve to prevent future subprime-style crises. In the new plan, Paulson says,

"The Fed would have the authority to go wherever in the [financial] system it thinks it needs to go for a deeper look to preserve stability."

Slate protests:

The Federal Reserve Bank, whose job already includes regulating a large component of the financial system, has failed pretty badly at its tasks. The proposed solution—to give it more responsibility—seems ridiculous and hazardous.