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Congressman Vito Fossella (R-NY13) today released the following statement on Treasury Secretary Paulson’s remarks at the U.S. Chamber of Commerce. Fossella, who serves as Chairman of the “Capital Markets, Economic and Information Security” Task Force under the House Republican Policy Committee, is expected to unveil regulatory reform legislation in the next several weeks.
Fossella said, “Secretary Paulson’s remarks reflect the reality of today’s marketplace. We need to adjust our regulatory system to more accurately reflect the changing nature of and relationship between our diversified financial institutions. A 21st century regulatory framework should provide systemic oversight to ensure adequate risk management and the long-term safety and soundness of the system, while also producing efficiencies that will promote the growth of American financial institutions and our capital markets. Last week, I announced the principles of a regulatory reform proposal I believe will strike that balance between greater information sharing and systemic supervision while reducing duplications and overlap.”
Fossella’s legislation will be based on the following principles:- Greater supervisory consistency and effectiveness to strengthen systemic oversight;
- Greater cooperation and information sharing among regulatory agencies;
- Reductions in duplications and inefficiencies that create undue regulatory burdens;
- Shift towards a more prudential, principles-based system of supervision, and
- Preservation of regulatory specialization and competition
