Date: February 3, 2017
Liz Pierce, 212.313.1173, email@example.com
SIFMA Commends Presidential Action to
Review Financial Regulatory Framework
DC, February 3, 2017 – SIFMA today released a statement from Kenneth E.
Bentsen, Jr., SIFMA president and CEO, regarding the executive order from
President Trump calling for review of the nation’s financial regulatory
framework and its impact on the markets and the economy:
“SIFMA has long called for a cumulative review of financial regulations
including those put in place since 2008 and we commend the Trump Administration
taking this action. Our capital markets are the envy of the world and also
among the most regulated sectors in the U.S. economy. It is imperative to
ensure that our financial regulatory framework does not unnecessarily impede
capital formation that drives job creation, economic growth and investor
opportunity in this country.
“There is early evidence that regulation is negatively impacting capital
markets that spur economic activity. A 2016 report by the Financial Stability Board
found evidence that liquidity is declining in sovereign and corporate bond
markets. The bond markets are a vital funding source for businesses looking to
grow and invest in their future. A 2016 Federal Reserve report also concluded that bonds are less
liquid during times of stress due to the Volcker Rule.
“The industry has commissioned several studies to jumpstart and encourage
a comprehensive regulatory review, including a 2016 Oliver Wyman report to review Basel reforms, and a
2015 report by PwC on the state of global
market liquidity. Research found early warning signals that implementation of
new rules is creating higher costs which are likely to be transmitted the
broader economy. Europe already has initiated its own “Call for Evidence” that has led
to proposed changes in the European ruleset.
“The industry has changed dramatically over the past seven years. The
capital markets are more secure and financial institutions’ balance sheets are
less leveraged, more liquid, and meaningfully more resilient than ever before –
in fact, capital levels have doubled since 2009. It’s now time to consider
whether and how regulation may be impeding the ability to deploy capital and
credit to grow the economy and create jobs.
SIFMA and its members look forward to providing our observations and
recommendations to the Treasury and members of the Financial Stability
SIFMA is the voice of the U.S. securities industry.
We represent the broker-dealers, banks and asset managers whose nearly 1
million employees provide access to the capital markets, raising over $2.5
trillion for businesses and municipalities in the U.S., serving clients with
over $20 trillion in assets and managing more than $67 trillion in assets for
individual and institutional clients including mutual funds and retirement
plans. 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 http://www.sifma.org.