Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke are appearing before the House Financial Services Committee to suggest ways Congress can overhaul the financial regulatory system to prevent future crises. Paulson defended Fannie Mae and Freddie Mac from critics, saying “Their regulator has made it clear that they are adequately capitalized…they play an important role in our housing markets today and need to continue to play an important role in the future.” Not surprisingly, he also is recommending that tighter standards be imposed on mortgage originators - so we have that to look forward to. Bernanke and Paulson’s testimony on the US financial system is the first such hearing of its kind, and the markets could easily move based on the comments that come out during the testimony.
With no further economic reports in store for the day, Bonds will react to comments from the hearing as well as action in the Stock market.
