Congressman Vito Fossella (R-NY13) today urged House Speaker Nancy Pelosi to reconvene Congress this week to begin working on a legislative proposal to reform the regulatory environment to enhance the competitiveness of the U.S. financial markets.
Fossella serves as Chairman of the “Capital Markets, Economic and Information Security” Task Force under the House Republican Policy Committee and has been working for one year on a legislative package to modernize oversight of the financial markets. He is expected to unveil the legislation within the next several weeks
In a letter to Pelosi today, Fossella said, “The recent market turmoil, combined with unprecedented action by the Federal Reserve over the past week, reinforces the need to modernize oversight of our financial markets in an increasingly complex industry. I am currently finalizing my own legislative package on regulatory reform that represents the culmination of one year of work and analysis. I believe the time is right for action by Congress, which will help strengthen our economy and bring greater certainty and confidence to the marketplace. Congress must meet the current economic challenges head-on and not allow more time to pass without action. The first step is to cut Easter recess short and reconvene Congress this week to resume the important work of our nation.”
Fossella has been meeting with financial leaders across the country for one year as he develops a comprehensive plan to modernize oversight of the U.S. financial markets.
Fossella said, “The current structure results in duplications, inefficiencies and regulatory arbitrage that inhibit the ability of regulators to monitor systemic risk and ensure safety and soundness. The legislation Congress develops must, at its core, reduce duplications and inefficiencies that create undue regulatory burdens. It must also ensure greater supervisory consistency and effectiveness to strengthen systemic oversight and also greater cooperation and information sharing among regulatory agencies. Finally, Congress must include provisions to shift towards a more prudential, principles-based system of supervision as well as preserve regulatory specialization and competition.”
Fossella’s call for Congress to reconvene this week comes one day after Senator Arlen Specter made a similar suggestion in a call for action on the economy.
