U.S. House Financial Services Committee Holds Hearing On Future of Financial Services Regulation

The U.S. House Financial Services Committee (“Committee”) held a hearing entitled “The Future of Financial Services Regulation” on Tuesday, October 21, 2008.

The purpose of the hearing was to address the need for broad regulatory restructuring and reform in U.S. financial markets, including financial institution oversight and regulation, systemic risk, and housing finance.

Today’s hearing focused on the extent to which the current U.S. regulatory system contributed to the current market turmoil, and whether adoption of a stronger, more robust financial regulatory system could contribute to a more rapid recovery of the financial markets and the economy. Some specific issues examined included:

• Current state of the financial regulatory system, both in the United States and abroad, and ways to measure and limit risk without stifling innovations while improving market liquidity and breadth
• The implications of current governmental lending and support facilities for the regulatory structure
• Proposals to improve the regulatory structure to restore confidence in financial markets and institutions through a stronger system of regulation and oversight
• The need for enhanced capital and reserve requirements for financial firms
• The adequacy of current powers and coverage of the existing regulatory structure

Panel One speakers included (to view a speaker’s written testimony, click on his or her name below):

• The Honorable Alice M. Rivlin, Senior Fellow, Metropolitan Policy Program, Economic Studies, Director, Greater Washington Research Project, Brookings Institution
• Dr. Joseph E. Stiglitz, Professor, Columbia University
• Mr. Joel Seligman, President, University of Rochester
• The Honorable Manuel H. Johnson, JohnsonSmick International 

Panel Two speakers included (to view a speaker’s written testimony, click on his name below):

• The Honorable Steve Bartlett, President and Chief Executive Officer, The Financial Services Roundtable
• Mr. Edward Yingling, President and Chief Executive Officer, American Bankers Association
• Mr. T. Timothy Ryan, Jr., President and Chief Executive Officer, Securities Industry and Financial Markets Association
• Mr. Mike Washburn, President and Chief Executive Officer, Red Mountain Bank, on behalf of the Independent Community Bankers of America

Written statements provided by Committee members included:

• Congressman Paul E. Kanjorski
• Congressman Michael E. Capuano
• Congressman Ron Klein
• Statement from Chairman Barney Frank Correcting the Record
• Response from Chairman Frank to Ranking Member Bachus’ Letter to the Justice Department Regarding GSEs

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.