In a policy statement released by the President's Working Group on Financial Markets, U.S. Treasury Secretary Henry Paulson said that there is much work to be done on market regulation.

"While market participants and regulators alike have taken important steps, there is still much work to be done," Paulson said. "This progress report demonstrates that as we work to address the immediate issues at hand, we also have been working to reduce the likelihood that mistakes of the past will be repeated."

Paulson said the market crisis and recent developments highlight the need for regulatory reform.

"Recent market events have highlighted the importance and increased relevance of the March recommendations and the need to continue to move forward with implementation of the appropriate corrective measures, including the need for comprehensive regulatory reform of the ineffective existing financial regulatory structure in order to restore confidence in financial markets and institutions going forward," read the statement.

By Steve Stecyk and edited by Nancy Girgis
©CEP News Ltd. 2008