Release Date: May 20, 2010
Contact: Andrew DeSouza, (202) 962-7390, email@example.com
SIFMA President and CEO Tim Ryan Statement on Senate Passage of Regulatory Reform Legislation
Washington, DC, May 20, 2010-The Securities Industry and Financial Markets Association today released the following statement from SIFMA President and CEO Tim Ryan after the Senate passed their version of financial regulatory reform legislation.
"While we continue to support financial reform legislation that responsibly guards against systemic risk, protects investors and increases regulatory transparency and oversight of all markets, there are several provisions in the current legislation that would undermine the original goals for reform by creating unintended consequences that could have a negative impact on our economy.
"There have been important, positive steps forward including the creation of a systemic risk council and a resolution authority to ensure the orderly wind down of failing financial institutions. However, provisions like the so-called Volcker Rule would impose sweeping new restrictions on size and activities that were not a cause of the financial crisis.
"A number of the provisions in the derivatives section of the bill also remain problematic. Requiring banks to push out their derivatives businesses and limiting their ability to hedge their own risk exposures would not only deplete institutions of much needed capital, it will ultimately hurt consumers through higher mortgage and credit costs. We also believe that requiring financial institutions entering into swap contracts with state governments, pension funds or endowments to act as fiduciaries for their clients is legally unworkable and would limit these clients' ability to access to vital risk management tools.
"As a result, while we support the bill's original goal of enhancing systemic risk regulation and ending too big to fail through resolution authority, we must oppose the Senate's legislation due to these provisions. We will continue to work with Members of Congress on these and other issues to ensure responsible reform that strengthens our financial system, but does not undermine America's economic growth and job creation is enacted."
The Securities Industry and Financial Markets Association (SIFMA) brings together the shared interests of hundreds of securities firms, banks and asset managers. SIFMA's mission is to support a strong financial industry, investor opportunity, capital formation, job creation and economic growth, while building trust and confidence in the financial markets. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit www.sifma.org.