FACTBOX-Politicians on financial market plan

(Reuters) - Reaction from the U.S. presidential candidates and key lawmakers to the Bush administration proposals for broad reform of financial regulation.

SEN. HILLARY CLINTON, DEMOCRATIC PRESIDENTIAL CANDIDATE

"There is still a very serious gap between what the administration is proposing and the immediate crisis that we face," Clinton told Reuters.

"Although I appreciate and agree with some of the recommendations, the blueprint is simply too short on action."

SEN. BARACK OBAMA, DEMOCRATIC PRESIDENTIAL CANDIDATE

"George Bush finally figured out that we need to maybe have some oversight of the financial markets. So he's putting out a plan and it turns out that he is introducing some consolidation and streamlining of the regulatory system on Wall Street. But he's not making the regulations any tougher. He's not preventing the predatory lending that is responsible for a lot of these problems."

SEN. JOHN MCCAIN, REPUBLICAN PRESIDENTIAL CANDIDATE

"It is very clear that this long overdue regulatory reform is necessary to regain the trust of the American investor. Our current system was designed over 70 years ago and times and markets have changed dramatically."

"We now have too many agencies with no authority or overlapping authority. What is obvious from the recent situation is that we did not have enough oversight and homeowners have been hurt. As a result, we are in desperate need of more visibility and more transparency."

SENATE REPUBLICAN LEADER MITCH MCCONNELL OF KENTUCKY

"Secretary Paulson's proposal to overhaul the regulatory structure for the nation's financial industry is a serious proposal which requires thorough consideration. It's a good step forward in addressing our current patchwork of Depression-era regulators, and the Congress should give it fair consideration and review."

DEMOCRATIC SEN. CHARLES SCHUMER OF NEW YORK

"This blueprint is a good foundation for updating the regulation of U.S. financial markets. Secretary Paulson is right that unifying our regulatory system is necessary in order to operate more intelligently and efficiently in the globalized financial system. If anything, the Treasury plan does not consolidate redundant agencies enough and a single regulator may be a better approach."

But Schumer said "certain important pieces are not included in Secretary Paulson's plan. And I strongly disagree with the Treasury Secretary when he says the current regulatory framework is not at fault for the unrest troubling our economy. The unregulated corners of our economy did much to contribute to the meltdown in our housing market and the accompanying spillover to our financial markets."

DEMOCRATIC SEN. CHRIS DODD OF CONNECTICUT

The chairman of the U.S. Senate Banking Committee said he welcomed the plan but questioned its relevance in addressing the immediate housing market crisis.

"To talk about overhauling the regulatory system is a wonderful idea. But frankly it doesn't relate to the issues we're grappling with," Dodd told reporters. "I would call this a wild pitch. It's not even close to the strike zone."

REPUBLICAN REP. VITO FOSSELLA OF NEW YORK

The six-term lawmaker and member of the energy and commerce committee called the plan "a solid blueprint offered at a critical time."

"This blueprint, as well as the many other reports issued over the past year, shows Congress the way forward. The only question now is whether Congress will choose to act wisely or veer off towards overregulation. Congress must recognize the events of recent weeks are a call to action. The debate in the weeks ahead will be essential."

DEMOCRATIC HOUSE SPEAKER NANCY PELOSI OF CALIFORNIA

"Congressional Democrats will continue to work to provide additional assistance to millions of families at risk of losing their homes, bring much-needed relief to consumers feeling the impact of the economic downturn, and ensure meaningful regulation of the financial system.

"While Secretary Paulson's plan to restructure regulation of the financial markets is a step in the right direction, we need to go further; we must take steps now to provide help to families who are hurting."

(Reporting by Jeff Mason, Caren Bohan, Steve Holland, Kevin Drawbaugh and Thomas Ferraro; Editing by Eric Beech)