UPDATE: Shaheen lays out three-point plan to deal with financial oversight

Jeanne Shaheen: Campaign PhotoResponding to the current financial crisis, former Gov. Jeanne Shaheen (D-Madbury) purposed a three-point plan that calls for greater oversight of financial institutions.

Shaheen also used the opportunity to criticize her rival, U. S. Sen. John Sununu (R-Waterville Valley), criticisms the Sununu campaign calls, "empty political rhetoric."

Shaheen purposed that the oversight system be streamlined, strengthen liquidity and disclosure requirements, and regulate financial institutions based on the services they offer.

"What we've seen is that self-regulation has not worked," Shaheen said on a conference call with reporters. Joining Shaheen on the call was U.S. Sen. Byron Dorgan (D-N.D.).

Shaheen said Sununu supported policies that led to the current economic crisis.

"The lack of oversight, the lack of accountability that George Bush and his allies like John Sununu in the Senate have supported for our financial institutions is what brought us here today," Shaheen said. "John Sununu has been in Congress for 12 years and he has sat back while the administration has gutted oversight of lending practices and oversight of Wall Street."

Sununu's campaign responded that Sununu has sponsored legislation that would increase oversight over financial companies.

"Jeanne Shaheen's empty political rhetoric demonstrates how woefully unprepared she is to discuss our economic crisis and propose real solutions to strengthen our financial markets," Ryan Williams, Sununu's communications director, said in a statement. "John Sununu has led the fight in Washington for fair and strong policies to maintain credibility in our economy - authoring key legislation that created tighter regulations on Fannie Mae and Freddie Mac and provided greater federal oversight of insurance markets."

In 2006, Sununu sponsored the National Insurance Act which attempted to create a single regulatory system over the insurance market, and in 2003 he sponsored The Federal Enterprise Regulatory Reform Act, which sought to increase regulation over Fannie Mae and Freddie Mac.

Shaheen also discussed the recent announcement that the government will bail out AIG, the largest insurance company in the country.

Before the bailout was announced, Shaheen told The Union Leader, "we cannot afford to continue using taxpayers' money to bail out mismanaged Wall Street investment banks."

However, speaking to reporters this morning, Shaheen said she will wait to determine whether or not she approves the bailout.

"You know I think we're still trying to get more information about the government's decision as to what the impact is going to be on the taxpayers," she said. "I'm going to hopefully have more information in the next day or so and I'll be in a better position to decide whether I think this is a good thing to do for taxpayers or not."

Also read:

-Sununu Opposed Wall Street Oversight

-NHGOP CALLS OUT NEW HAMSPHIRE DEMOCRATS’ HYPOCRISY