U.S. Chamber's Donohue: Critics Like Sen. Warren Need to Stop Vilifying Wall Street
|Wall Street sign. Photo credit: Michael Nagle/Bloomberg|
“We’re exposing those who are beating up on the system to score political points,” U.S. Chamber President and CEO Tom Donohue exclaimed in a speech at the NASDAQ stock exchange in New York City:
|Source: Center for Capital Market Competitiveness|
Sen. Warren and her friends aren’t looking out for them; they are looking to gather more power for themselves so that they can run the entire economy from Washington.
What their proposals would do is help trap us in this anemic economy, strangle small businesses and Main Street, and destroy our ability to finance America’s economic growth.
The financial industry is far from perfect, but much of today’s rhetoric is ill-informed or just plain wrong.
Instead of regulations that punish risk-taking, Donohue pressed for “smart regulation.” He described such a regulatory vision:
It would support diverse products and services from an array of capital providers and investors. It would offer ample access to affordable credit and ensure liquidity for businesses’ daily operations.
Its regulators would have clearly defined responsibilities, enforce the rules smartly, be held accountable, and coordinate well with other agencies. Imagine being a mid-size bank or financial firm with multiple regulators giving you different guidance or instructions. It would make you want to see a psychiatrist.
Regulators would understand the markets they are regulating and not pick winners and losers among sources or types of capital.
They would make certain that our system is coordinated, complementary, and compatible with the world’s other major economies.
They would enforce rules impartially and consistently. They would focus on rooting out the genuine bad actors and stopping them before they do damage.
They would ensure that honest market participants know the rules of the road and have a level playing field.
Policymakers would understand that our system thrives on entrepreneurial risk and regulatory certainty.
Regulators aren’t off the hook. Donohue called for the Consumer Financial Protection Bureau to be led by a five-person commission more accountable to Congress instead of its current single director. The Federal Reserve’s financial regulatory functions deserve more transparency and accountability. And the Financial Stability Oversight Committee needs to tell companies how they can avoid getting the “systemically important financial institution” (SIFI) label and what has to be done to have it removed.
Poor public policy choices gave us a sputtering, slow-growing economy. But with smarter financial regulation, Donohue counseled, America’s capital markets “can finance America’s growth and provide countless opportunities for our citizens.”
Sean Hackbarth is a policy advocate and Senior Editor, Digital Content, at U.S Chamber of Commerce. He twitters at @seanhackbarth and is a contributing author at the ARRA News Service.
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