Chamber of Commerce President Donohue Speaks on Financing Economic Growth
U.S. Chamber of Commerce
Financing America’s Economic Growth:
How Robust Capital Markets Can Help Revitalize Our Economy
Wednesday, June 22, 2016
Key Topics & Takeaways
- Importance of Financial Markets: Donohue highlighted the interconnectedness of Wall Street and Main Street, voiced support for a nimble regulatory system that can detect crises, and emphasized the importance of reasonable risk-taking.
- Chamber Reform Proposals: Donohue noted that the Chamber would release an action plan to reform the Federal Reserve and recommended a comprehensive review of the Volcker rule, Basel III and money market fund regulations to assess their combined effect on the economy.
Speaker
- Thomas J. Donohue, President and Chief Executive Officer, U.S. Chamber of Commerce
Remarks
Thomas Donohue, President and CEO of the U.S. Chamber of Commerce, opened by taking a moment to reflect on the Chamber’s strategy of supporting the long-term competitiveness of the U.S. capital markets prior to the financial crisis. Donohue highlighted the interconnectedness of Wall Street and Main Street, voiced support for a nimble regulatory system that can detect crises, and emphasized the importance of reasonable risk-taking. He argued that the reason why the U.S. is still stuck in the current economic situation is the poor public policy choices in reaction to the financial crisis. Donohue said that smarter regulations were needed and that there has been too much focus on short-term stability rather than long-term stability and sustainable growth.
Donohue lamented that lawmakers and policymakers have not seen growth in capital markets as key to economic growth and highlighted that punitive regulations have undermined the financial system and the private sector’s ability to provide capital. In particular, he stressed that Dodd-Frank and Basel III have hit small and regional banks that small companies depend on for capital. He noted that companies have increased compliance costs due to regulation and have delayed or canceled long-term investments. To get the economy back on track, Donohue said that there needed to be a vision of what we want our capital markets to achieve and a system that would allow for legitimate risk-taking.
Donohue called for clearly defined regulations and better coordination among regulators, outlining a number of the Chamber’s policy proposals. He stated that the Chamber has released a plan to reform the Securities and Exchange Commission (SEC) to make it operationally stronger, to overhaul the Financial Stability Oversight Council (FSOC) to make it more transparent, and to implement checks and balances at the Consumer Financial Protection Bureau (CFPB) for increased oversight. He also said the Chamber has proposed due process reforms in SEC legal proceedings, eliminating the Department of Labor’s fiduciary rule, and stopping the CFPB’s efforts to get rid of pre-dispute arbitration clauses. He also noted that the Chamber would release an action plan to reform the Federal Reserve and recommended a comprehensive review of the Volcker rule, Basel III and money market fund regulations to assess their combined effect on the economy. Donohue emphasized that the primary goal of financial regulation should not be stability alone but also prioritize growth.
Donohue criticized the ongoing political attacks on financial institutions and said that the Chamber is leading the effort to defend the U.S. financial system and its institutions. He emphasized the importance of competition and said that the Chamber will underscore the positive role that the capital markets play in growth, jobs, individual opportunity and economic security.
For more information on this event, please click here.
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U.S. Chamber of Commerce
Financing America’s Economic Growth:
How Robust Capital Markets Can Help Revitalize Our Economy
Wednesday, June 22, 2016
Key Topics & Takeaways
- Importance of Financial Markets: Donohue highlighted the interconnectedness of Wall Street and Main Street, voiced support for a nimble regulatory system that can detect crises, and emphasized the importance of reasonable risk-taking.
- Chamber Reform Proposals: Donohue noted that the Chamber would release an action plan to reform the Federal Reserve and recommended a comprehensive review of the Volcker rule, Basel III and money market fund regulations to assess their combined effect on the economy.
Speaker
- Thomas J. Donohue, President and Chief Executive Officer, U.S. Chamber of Commerce
Remarks
Thomas Donohue, President and CEO of the U.S. Chamber of Commerce, opened by taking a moment to reflect on the Chamber’s strategy of supporting the long-term competitiveness of the U.S. capital markets prior to the financial crisis. Donohue highlighted the interconnectedness of Wall Street and Main Street, voiced support for a nimble regulatory system that can detect crises, and emphasized the importance of reasonable risk-taking. He argued that the reason why the U.S. is still stuck in the current economic situation is the poor public policy choices in reaction to the financial crisis. Donohue said that smarter regulations were needed and that there has been too much focus on short-term stability rather than long-term stability and sustainable growth.
Donohue lamented that lawmakers and policymakers have not seen growth in capital markets as key to economic growth and highlighted that punitive regulations have undermined the financial system and the private sector’s ability to provide capital. In particular, he stressed that Dodd-Frank and Basel III have hit small and regional banks that small companies depend on for capital. He noted that companies have increased compliance costs due to regulation and have delayed or canceled long-term investments. To get the economy back on track, Donohue said that there needed to be a vision of what we want our capital markets to achieve and a system that would allow for legitimate risk-taking.
Donohue called for clearly defined regulations and better coordination among regulators, outlining a number of the Chamber’s policy proposals. He stated that the Chamber has released a plan to reform the Securities and Exchange Commission (SEC) to make it operationally stronger, to overhaul the Financial Stability Oversight Council (FSOC) to make it more transparent, and to implement checks and balances at the Consumer Financial Protection Bureau (CFPB) for increased oversight. He also said the Chamber has proposed due process reforms in SEC legal proceedings, eliminating the Department of Labor’s fiduciary rule, and stopping the CFPB’s efforts to get rid of pre-dispute arbitration clauses. He also noted that the Chamber would release an action plan to reform the Federal Reserve and recommended a comprehensive review of the Volcker rule, Basel III and money market fund regulations to assess their combined effect on the economy. Donohue emphasized that the primary goal of financial regulation should not be stability alone but also prioritize growth.
Donohue criticized the ongoing political attacks on financial institutions and said that the Chamber is leading the effort to defend the U.S. financial system and its institutions. He emphasized the importance of competition and said that the Chamber will underscore the positive role that the capital markets play in growth, jobs, individual opportunity and economic security.
For more information on this event, please click here.