This morning, Treasury Secretary Hank Paulson unveiled the long-awaited financial regulatory reform proposal of the President's Working Group on Financial Markets, which he heads. President Bush and Secretary Paulson are to be commended for the breadth of this proposal and for its principled and thoughtful approach. Admittedly, the proposal won't do much for the immediate financial crisis, but it would avert some future crises.

Replacing our hodgepodge of overlapping and ineffective financial regulation with a comprehensive, sensible, and lower cost system makes all the sense in the world. Many in the financial markets support these reforms.