Devoted to Managers and those that seek to improve their management skills

The Treasury plan reported on over the last couple days, in reality fuels more questions than it answers, as the extremely vague plan - if you could call it that - doesn't really outline much in detail.

One thing the plan does offer, is an increased interference from the government in the affairs of the financial business community, which may not be the best solution for all parties involved.

While Treasury Secretary Henry Paulson said he doesn't see the Fed taking the authority in approving specific products, he did say it would be involved in something that would be able to identify "excess complexity" which could end up causing damage to the system; an obvious reference to financial instruments like derivatives.

According to the plan, the Fed "would have the responsibility and authority to gather appropriate information, disclose information, collaborate with the other regulators on rule writing and take corrective actions when necessary to ensure overall financial market stability."

WSJ's Damian Paletta looks at Treasury Secretary Paulson's plan to overhaul the U.S. financial regulatory structure.

As mentioned above, the details of this plan aren't in place yet, and will take years and legislation to enact.

Paulson added the Fed "would have the authority to go wherever in the system it thinks it needs to go for a deeper look to preserve stability."

The broad outline at this time is something to be concerned with though, as if it is kept in place, could eventually give the Fed powers far beyond its existing powers, and could be able to gather information from a company almost at will and for any reason, under the auspices of "extreme complexity" and preservation of stability. 

Another concern is the Fed, or any government agency, when they interfere in the markets and business almost never understand the "unintended consequences" they release with their actions, which most of the time do more harm than good.

At this time all the plan does is bring some of the existing offices together, merging some of them under one umbrella.

A couple changes of note would be the creation of a new Mortgage Origination Commission, which would have its director chosen by the president, as well as the Fed would take over the regulation of the insurance industry for the first time, through the creation of a national insurance office, which would be part of the Treasury Department.

All of this says is there will be bigger government and more interference. That is never a good thing for business. If you like the idea of a growing nanny state though, this should make a lot of people happy.