Release Date: Jun 16, 2010Contact: 888-249-NEWS
Congress on Brink of Massive Government Overreach with Elements of Financial Reform Proposal
'This Illustrates the Excessive Scope and Unintended Consequences of this Bill,' Hirschmann Says
WASHINGTON, D.C.--"Today the U.S. Chamber of Commerce will call on Senate and House financial service conferees to strike down a proposal that would have federal agencies regulate the compensation of a vast number of employees at large financial firms, from receptionists to CEOs.
"What we're seeing is the potential for massive government overreach into the private sector and it's time to push back," said David Hirschmann, president and CEO of the U.S. Chamber's Center for Capital Markets. Hirschmann and the Chamber's policy team plan to highlight for lawmakers that under House Offer for Title IX, subtitle E and G, financial services firms would be required to submit practices and plans for incentive compensations for everyone in a covered financial services firm--"even rank and file employees such as administrative staff and bank tellers.
"This is another step toward massive government intrusion into the marketplace, dictating how workers should be paid," he said. "It illustrates the excessive scope and unintended consequences of this bill."
"Employee compensation should be a decision made by appropriate levels of management or the board of directors and based on a variety of factors such as performance, merit, or cost of living increases," Hirschmann said. "The Chamber does not believe that the command and control regulatory scheme set forth in this legislation would lead to the economic growth and job creation that America desperately needs."
Since its inception three years ago, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.
The U.S. Chamber of Commerce is the world's largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.
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