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Congressman Vito Fossella (R-NY13) today unveiled the five principles that will serve as the cornerstone of his legislation 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.
During a briefing for the media today, Fossella said he intends to introduce legislation shortly that would create:- 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
Fossella said, “The system of financial regulation in the U.S. is outdated. It was crafted in the 1930’s, and is no longer adequate in effectively overseeing a modernized and increasingly complex industry. 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. These principles will serve as the guide as I draft legislation to modernize and rationalize the oversight of our system of financial regulation.”
