Release Date: Apr 03, 2012Contact: 888-249-NEWS
U.S. Chamber Warns of Economic Consequences to FSOC’s Final Rule on Systemic Risk Designation
‘It is Disappointing to See FSOC Issue a Rule that Could Have Significant Consequences on our Economy Without First Receiving Full Input from Interested Parties and Potentially Affected Stakeholders,’ Says Hirschmann
WASHINGTON, D.C.—U.S. Chamber of Commerce Center for Capital Markets Competitiveness (CCMC) President and CEO David Hirschmann issued the following statement today on the Financial Stability Oversight Council’s (FSOC) release of its final rule on systemic risk designation:
“It is disappointing to see FSOC issue a rule that could have significant consequences on our economy without first receiving full input from interested parties and potentially affected stakeholders. Despite promises of transparency, regulators have not responded to requests for a more open process, including our requests for a public hearing to consider the process, legal, and economic questions that have yet to be answered. Instead, non-financial companies are left to wonder why their comments have been ignored by FSOC and how they will be impacted by such an ambiguous rule.
“We also asked for a cost-benefit analysis of the rule itself and of its likely application to be published prior to the final rule being implemented. Without it, stakeholders have been denied the opportunity to comment and engage in a public discussion on factors that could have significant implications to them and their counterparties.
“This rule may force companies to start changing their business model or cease offering certain products and services. We need diversity among capital sources for the markets to operate efficiently, and homogenization of the financial industry will not get us there. These are concerns that could have been covered with public dialogue but FSOC chose to write this rule behind closed doors.”
Since its inception in 2007, 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.