Wednesday, June 15, 2011

Dodd-Frank's Impact on U.S. Competitiveness Focus Of June 16 Hearing

The House Financial Services Committee is holding a hearing tomorrow on the impact of the Dodd-Frank Act on jobs and U.S. competitiveness.

Describing the objective of the hearing in this press release, Committee Chairman Spencer Bachus stated:

There is a widespread and growing concern that the Dodd-Frank Act with its 400 new regulations will lead to industry, capital and jobs leaving the United States. This is a concern that many of us on the Committee have expressed repeatedly. Our hearing will examine the regulatory disparities between the U.S. and other nations and how that could put American companies at a competitive disadvantage and harm our economy.
The press release continues:

The Committee will specifically look at four crucial areas where divergent regulatory approaches taken by the United States and the rest of the world could damage the U.S. economy and the ability of financial institutions to compete against their foreign counterparts: capital and liquidity requirements; regulation and oversight of “systemically important financial institutions”; derivatives requirements; and a total ban on proprietary trading.

Slated to appear on the first panel at the hearing are the SEC Chairman Mary Schapiro, CFTC Chairman Gary Gensler, FDIC Chairman Sheila Bair, and senior representatives from the Federal Reserve, OCC and U.S. Treasury.

The second panel includes representatives from industry associations ISDA and SIFMA, the Chief Risk Officer of JP Morgan Chase, Hal Scott of Harvard Law School (who heads up a private sector initiative on U.S. competitiveness, the Committee on Capital Markets Regulation, informally known as the 'Paulson Committee' as it was launched during former U.S. Treasury Secretary Henry Paulson's tenure), and Damon Silvers of the AFL-CIO (who served on the Congressional Oversight Panel established by Congress in 2008 'to review the current state of financial markets and the financial regulatory system' ).

Some of the testimony has already been posted on the hearing webpage.

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1 comment:

Anonymous said...

Dodd Frank is an overeaction that doesn't correct the problems. The issue was subprime lending,
Credit Default Swaps and CDO's. Credit default Swaps are essentially credit insurance and should be treated as such. Subprime lending can be curbed with higher stds at Fannie and Freddie on mortgages they will purchase.
tony d