UPDATE 1-Six imperatives for financial regulation-Summers

* Summers says unemployment ‘unacceptable’

* But sense of free fall gone

(adds quotes, background)

PALO ALTO, Calif., March 12 (BestGrowthStock) – The United States
should rethink domestic and global financial regulation,
Lawrence Summers, director of the the White House’s National
Economic Council, said on Friday, outlining six “imperatives.”

“There is every reason to believe that pure market
solutions are not viable,” Summers told a Stanford Institute
for Economic Policy Research conference.

The speech comes against the backdrop of a debate over how
much regulation and in what form would best cut risks of
another Wall Street crisis or massive failure of the financial

Summers said there were signs of improvement from a year
ago but that much work remained to right the economy.

“Unemployment is at unacceptable levels and it will remain
at unacceptable levels for a substantial interval,” he said.
But, he said, the previous sense of “free fall” was gone.

Summers gave six imperatives for policy in financial

* Comprehensive regulation of all systemically important

* Procedures for managing failures of even the biggest

* Raise and make comprehensive higher capital
requirements, and restrictions on leverage, and requirements
for liquidity.

* Americans should be compensated for giving assistance to

* Over-the-counter derivatives and swap transactions,
sophisticated financial instruments associated with the Wall
Street crisis, should require use of a clearinghouse or
exchange where possible to increase transparency and stability

* Institutions that benefit from the government’s safety
net should face restrictions on activities.

(Peter Henderson, San Francisco Newsroom +1 415 677 2541)

UPDATE 1-Six imperatives for financial regulation-Summers