U.S. Chamber’s Donohue: Stop the Senseless Attacks on America’s Financial System and Institutions

Wednesday, June 22, 2016 - 10:15am

Smartly Regulated Markets Can Fuel Economic Growth, While Attacks Only ‘Hobble’ the Economy, Says Chamber Chief

NEW YORK—Attacks on America’s financial system and institutions by the administration, activists, and politicians from both the left and right have undermined the economy, according to U.S. Chamber of Commerce President and CEO Thomas J. Donohue in a major address today at Nasdaq in New York City. Donohue said it was time to put the focus on where it belongs—creating robust capital markets that can finance America’s growth and provide jobs and opportunities for American consumers.

“Those attacking our capital markets don’t have a reform agenda, they have a big government agenda,” said Donohue. “They aren’t looking out for consumers or the ‘little guy.’ They are looking to gather more power for themselves so they can run the entire economy from Washington, D.C. Their proposals would trap us in this anemic economy and strangle small businesses and Main Street.”

In his remarks, Donohue explained that our financial services industry isn’t a problem to be solved, limited, and controlled—it’s a key ingredient to boosting the economy. But the current regulatory approach is restrictive, punitive, duplicative, and overlapping. It is focused on the impossible task of eliminating all risk from the system at the cost of economic growth. Donohue outlined an agenda to create robust and smartly regulated markets that could produce higher rates of growth and solve major financial challenges, such as unsustainable entitlement programs. That agenda includes promoting a modern regulatory system that ensures reasonable systemic risk regulation, supporting effective corporate governance policies, advocating for consumer protection and expanded access to responsible credit choices, and working for transparent financial reporting and disclosure policies to support capital formation, among others.  

“The next administration, regardless of party, must flatly reject the no-growth agenda we’re hearing from politicians and Wall Street critics,” Donohue said. “The last eight years of restrictive, punitive, redundant, and overlapping regulations have undermined our system’s ability to finance the growth of companies large and small. It’s past time for lawmakers and regulators to make economic growth a primary goal when regulating our capital markets.”

You can find a full copy of Donohue’s remarks here.

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.