U.S. Chamber Helps Drive Debate on Capital Markets

Calls for Regulatory Modernization and Long-Term Competitiveness

WASHINGTON, D.C.-The U.S. Chamber's Center for Capital Markets Competitiveness today held its 2nd Annual Capital Markets Summit and called for regulatory modernization to ensure long-term U.S. competitiveness. The Chamber specifically addressed the impact that the current financial crisis has on our broader economy and on Main Street America. It also focused on the financial services regulatory environment and emerging trends in securities litigation reform, the attorney-client privilege, and the globalization of accounting and auditing rules.

"The meltdown in the subprime mortgage sector and the resulting credit crunch are threatening to drag down our economy," said Tom Donohue, Chamber president and CEO. "Make no mistake. There was regulatory failure. But the failure came about not because we don't have enough regulation, but because we have an old patchwork system that can't deal with financial innovation.

"We applaud the aggressive steps taken by the Federal Reserve Bank, Congress, and the Bush administration to prevent a systemic collapse of our financial markets, improve liquidity, and restore confidence. We must make sure that existing or new regulations are actually going to work and not jeopardize entrepreneurs, risk taking, and long-term investment in our markets. We need more cooperation among federal agencies, Congress, and the private sector."

The Chamber's Center for Capital Markets Competitiveness also released a report: Strengthening U.S. Capital Markets: A Challenge for All Americans. This publication builds upon the Chamber's March 2007 Capital Markets Commission report and provides an action plan that includes the center's priorities and efforts to address the short- and long-term challenges faced by our markets.

The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

A link to the report can be found at: /ccmc/0803capmarkets

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