Treasury Secretary Henry Paulson was highly critical yesterday of American International Group's oversight, calling for federal regulation of insurance companies during an appearance on "Meet the Press."

In his comments, Mr. Paulson called AIG "very much a hedge fund on top of insurance companies." He called AIG a "classic example" of the need for "new regulations, new policies."

Mr. Paulson earlier this year called for a radical revamping of insurance regulation, starting with the establishment of a federal Office of Insurance Information, and ending up with an optional federal charter. He said the current crisis reinforces his earlier view about inadequacies in regulatory oversight.

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