He says Paulson could do more to encourage the Chinese to revalue the yuan, particularly because the dollar has been sinking sharply in global currency markets.
To do that, you have to force participants in the mortgage process to open up their books, and none of the proposals announced by Paulson on Monday do that.
Because these banks don't know, and what the government - what Paulson is saying he wants to do is buy these assets.
If troubles do come, Mr Paulson will have had some time to batten down the hatches and gain the confidence of the crew.
But billionaire Paulson has failed in fairly spectacular fashion to do that over the last several years.
"The best protection is to continually reinvent ourselves so someone else doesn't do it to us, " Paulson says.
On Thursday, Treasury Secretary Hank Paulson refused to specify what the government would do should the two fail saying only that their regulator had said they were well capitalized.
Now, it might seem crazy that U.S. taxpayers would be called upon to bail out, you know, the Royal Bank of Scotland, or UBS. But Secretary Paulson says, you know, these banks do a lot of business in the U.S., they employ a lot of people here, but you can expect that that will be a hard pill for a lot of Americans to swallow.
Under this provision, intended to ensure that taxes do not deter capable people from accepting government jobs, Mr Paulson is able to exchange his holdings in Goldman for various widely diversified investments.
ECONOMIST: Why it pays to become America's treasury secretary
Paulson is insisting that the banks reveal their positions like his group was ordered to do by a judge back in April.
Paulson began insisting that banks like Goldman reveal their positions as his firm was ordered to do by a judge back in April.
FORBES: Haggling Over Lehman Bonds Makes Paulson $550 Million Richer
"Today's actions are not what we ever wanted to do--but today's actions are what we must do to restore confidence to our financial system, " said Treasury Secretary Henry Paulson.
"These allegations do not represent the force that I joined and this condition cannot stand, " Mr Paulson said on Wednesday.
Secretary PAULSON: Because I think what this is about, is about market confidence and having the tools to do the job.
应用推荐