The House and Senate banking committee leaders today pledged in a letter to President Obama that they will get him a financial services regulatory overhaul bill by the end of the year.
Sen. Christopher Dodd, D-Conn., chairman of the Senate Banking Committee, and Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, also endorsed the financial regulatory system modernization principles that Obama and Treasury Secretary Timothy Geithner recently have announced.
Obama and Geithner are calling for systemic risk regulation; stronger consumer and investor protection measures; streamlined “prudential” supervision; and efforts to address gaps in regulation.
“We also recognize that the mobility of capital means that, while the ultimate decision as to what rules to adopt is a sovereign decision of each individual nation, success in this effort requires us to consult closely with other major financial centers with the goal of achieving appropriate coordination and minimizing any opportunities for regulatory arbitrage,” Dodd and Frank write in the letter to Obama.
“We agree that we must redouble our efforts to promote openness, transparency and plain language throughout our financial system,” the lawmakers write. “We also support comprehensive reform of the corporate governance and executive compensation of financial institutions.”
The new corporate governance framework should be one that demands “strict accountability of executives and promotes long-term value and growth for shareholders, companies, workers and the economy at large,” Dodd and Frank write.