Donohue Vows to Defend Financial Institutions Against Destructive Attacks
U.S. Chamber President and CEO Thomas J. Donohue today unveiled a new program, “Financing America’s Economic Growth,” at the Chamber’s 10th Annual Capital Markets Summit, noting that financial institutions are stuck in a no-win regulatory, business, legal, and political environment. The summit also features Finance Flash Forward, a thought leadership series intended to move beyond dead-end conversations on Dodd-Frank and anticipate the massive shift that innovation will bring to financial services in the next decade.
“Our financial services industry, made up of small and large banks, institutional investors, broker-dealers and many others, provides the fuel for our engine of economic growth,” Donohue said. “The Chamber will defend financial institutions against destructive attacks because financial services providers should be viewed as a key ingredient to boosting the economy, not a problem to be solved.”
Donohue also called for well-regulated markets to provide the certainty businesses need to raise capital and investors to provide it. Within this effort, the Chamber will propose and support changes that will help make the Federal Reserve a more transparent and accountable regulator, while fiercely defending the Fed’s monetary policy independence.
“An independent Fed is necessary to develop stable monetary policy, devoid of political interference, in order for markets to operate efficiently and spur economic growth. However, as a regulator it leaves a lot to be desired,” stated Donohue. “The Fed should have to abide by the same basic principles as other regulators—transparency, accountability, and due process in writing rules. It needs to write rules that fit the business model of the firm it will regulate.”
Additionally, Donohue outlined a comprehensive capital markets agenda that will produce a financial regulatory system that can spur growth, create jobs, and provide abundant capital to startups and businesses of all sizes. Major elements of the agenda include; fixing the Department of Labor fiduciary rule; preserving pre-dispute arbitration clauses in consumer credit; reforming the Financial Stability Oversight Council designation of systemically important financial institutions; eliminating conflicts of interest at proxy advisory firms; and passing legislation to improve small businesses’ access to capital.
The Finance Flash Forward series features insights from thought-leaders looking at the ways innovative technology is impacting our nation’s capital markets and the role technology can play in helping propel economic growth.
Donohue was joined at the summit by Security and Exchange Chair Mary Jo White, Senator Joe Donnelly (D-IN), Senator Pat Toomey (R-PA), Representative Randy Neugebauer (TX-19), Representative French Hill (AR-2), President and CEO of Charles Schwab Walter Bettinger, Commodity Futures Trading Commission Commissioner Chris Giancarlo, Natixis Global Asset Management President John Hailer, Patomak Global Partners CEO Paul Atkins, and U.S. Department of Treasury Counselor to the Secretary Antonio Weiss, among others.