The Bush administration's plans to shake up US financial market regulation are "too short on action," Democratic presidential candidate Hillary Clinton said yesterday.
Senator Clinton called for new standards governing mortgage lenders, reform of rating agencies to avoid conflicts of interest, a 30 per cent annual interest rate cap on all credit cards and more immediate authority for the Federal Reserve to regulate financial institutions.
Her comments came a day before US Treasury Secretary Henry Paulson unveils proposals for broad reform of financial regulation.
"There is still a very serious gap between what the administration is proposing and the immediate crisis that we face," Mrs Clinton said.
"Although I appreciate and agree with some of the recommendations, the blueprint is simply too short on action," said Mrs Clinton, who is battling Illinois Senator Barack Obama to become the Democratic nominee for November's presidential election.
Mrs Clinton called for new legislation to make mortgage originators - people or organisations that start the process of organising a loan - subject to minimum licensing, supervision and capital requirements similar to rules that apply to banks. She dismissed the Bush administration's proposal to establish a commission on the issue as "too little too late".
Mr Obama has also proposed greater government regulation of the US financial system and has called Mr Paulson's proposals related to the Fed inadequate.
Arizona Senator John McCain, who has secured the Republican presidential nomination, said he would study the administration's proposals.
Mrs Clinton, who has argued she is better placed than Mr Obama or Mr McCain to steer the US economy, accused her Republican rival of doing nothing.