Release Date: Mar 30, 2011Contact: 888-249-NEWS
U.S. Chamber Highlights Connection Between Strong Capital Markets and Job Creation
5th Annual Summit Features Post-Dodd-Frank Ideas from Business and Government to Ensure Competitive Capital Markets Generate Economic Growth
WASHINGTON,D.C.—U.S. Chamber of Commerce President and CEO Thomas J. Donohue said today that the global competitiveness of America’s economy rests on the rules currently being formed as part of the Dodd-Frank Act. More than 300 business, government, and academic leaders attended The 5th Annual Capital Markets Summit to discuss the impacts of Dodd-Frank implementation and issues yet to be addressed.
“For America’s markets to remain competitive in a global economy, we need reform that doesn’t pick winners and losers among sources of capital,” said Donohue. “Businesses and consumers alike benefit from a highly liquid, well-regulated, and transparent capital markets system. Capital is the fuel that allows businesses to grow and create jobs. You can’t have one without the other and rules that drive capital elsewhere will stifle economic growth. We’re reaching rulemaking crunch time. It’s time to get it right.”
The summit, Ensuring Competitiveness in a Post-Regulatory Reform Environment, featured House Financial Services Committee Chairman Spencer Bachus (R-AL), Special Advisor to the Secretary of the Treasury Elizabeth Warren, National Economic Council Director Gene Sperling, JPMorgan Chase President and CEO Jamie Dimon, and Caterpillar Chairman and CEO Doug Oberhelman, along with Donohue.
As the implementation process moves forward, the Chamber is focused on five priorities:
- Derivatives: The Chamber is working to ensure an end-user exemption from a margin requirement for over-the-counter (OTC) derivatives. Businesses need the flexibility of access to OTC derivatives to bring low-cost products to consumers.
- Consumer Protection: The Chamber supports building an efficient and accountable bureau that is overseen by a five-member bipartisan commission rather than a single director. Disclosure can be improved by rationalizing conflicting or duplicative federal paperwork requirements. The Consumer Financial Protection Bureau (CFPB) should target bad actors in order to protect consumers, but also ensure a healthy, competitive market.
- Corporate Governance: The Chamber supports corporate governance standards that promote investment and economic growth. Rules need to be clear to improve shareholder value without simply advancing special interest agendas.
- Systemic Risk: The Chamber urges caution on identifying certain financial institutions as systemic risks. Designating such companies is an unprecedented move and will have a far-reaching impact on the U.S. and global economies.
- Whistleblower: While identifying and punishing fraud is critical, it should not come at the expense of existing internal corporate compliance programs. Instead of allowing companies to identify and fix problems, current proposals are essentially creating a bounty for people in search of a big payday.
At the summit, the Chamber highlighted Sources of Capital and Economic Growth: Interconnected and Diverse Markets Driving U.S. Competitiveness, a study conducted by Anjan Thakor, John E. Simon professor of finance at Washington University in St. Louis. The study examines how the interconnectivity of capital markets is critical to the United States remaining competitive in a global economy.
“Competitive capital markets are fundamental to growing our economy and creating jobs,” said Donohue. “All sources are important and necessary for our markets to function. The Chamber has an all-of-the-above strategy that advocates on behalf of America’s business owners so that they can have access to the capital they need to fulfill their dreams and drive America’s economy forward.”
Since its inception in 2007, the Center for Capital Markets Competitiveness (CCMC) 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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