Leave your feedback Share Copy URL https://www.pbs.org/newshour/show/rethinking-regulations-role-in-a-struggling-economy Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Transcript A new government report cites continued oversight problems for the $700 billion federal rescue plan. Ray Suarez examines emerging views on regulation's role in the U.S. economy and the possible creation of a government-run "bad bank" that would help take soured assets off the books of U.S. institutions. Read the Full Transcript Notice: Transcripts are machine and human generated and lightly edited for accuracy. They may contain errors. RAY SUAREZ: Over the past year, a lot of dominoes have tumbled in America. For years, lenders made increasingly risky loans; homeowners defaulted and lost their houses; lenders, like Countrywide, collapsed; then the banks, which held billions in commercial paper backed by bundled, foreclosed homes, teetered.Some, like Bear Stearns and Washington Mutual, collapsed, too, along with the Dow and retirement accounts.ELIZABETH WARREN, chair, congressional oversight panel: The people who are losing now and losing big time are the ones who never took those risks. RAY SUAREZ: Harvard professor and consumer credit expert Elizabeth Warren came to Washington to oversee TARP, the Troubled Asset Relief Program rushed into law last fall to stop the crisis. REP. ELLEN TAUSCHER, D-Calif.: On this vote, the yeas are 263, the nays are 171. The motion is adopted. RAY SUAREZ: The idea seemed simple, though huge: The government would spend $700 billion to buy up the mortgage-backed securities poisoning the balance sheets of banks and other institutions and money would flow again. That didn't work, but Warren's panel stayed in business to keep an eye on the emergency response.HENRY PAULSON, former Treasury secretary: Today I am announcing that the Treasury will purchase equity stakes in a wide variety of banks and thrifts.