Banks Regulatory Overhaul

``Our current regulatory regime is almost solely focusedabove ground at the tree level,'' Paulson said in remarks at theTreasury in Washington. ``The real threat to market stability isbelow ground, at the root level where the health of financialfirms is intertwined.'' ``We should and can have a structure that is designed for the world we live in, one that is more flexible, one that can better adapt to change, one that will allow us to moreeffectively deal with inevitable market disruptions, one thatwill better protect investors and consumers,'' Paulson said.