By Mark Felsenthal and Glenn Somerville 31 minutes ago WASHINGTON (Reuters) - Policy-makers said on Thursday they were doing everything possible to restore calm to financial markets, but stressed to lawmakers that a longer-term regulatory overhaul was vital to avert future crises.Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson told Congress they agreed the Fed needs a stronger hand in supervising investment banks to help shield the broader economy from problems like the ones that forced the emergency rescue of investment bank Bear Stearns.
"The Bear Stearns episode and market turmoil more generally have placed in stark relief the outdated nature of our financial regulatory system, and has convinced me that we must move much more quickly to update our regulatory structure and improve both market oversight and market discipline," Paulson told Congress.
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