Download - Restarting the Growth Engine: A Plan to Reform America's Capital Markets

All Americans have a vested interest in strengthening America’s financial services industry, and the time has come to rally support for this effort.”

Former New York Mayor Michael R. Bloomberg and U.S. Senator Charles Schumer.Sustaining New York’s and the US’ Global Financial Services Leadership, January 2007

The challenges of 2007 remain, but they haveBecome more complex. New challenges have risen as well.

It is imperative that we make progress.

The next administration has the opportunity to fix the mistakes of the past and address the structural shortfalls that may limit the future growth horizon.

INTRODUCTION

Today the U.S. Chamber is releasing an action planfor the next administration.

The hallmarks of the U.S. financial system have been diversity, competition, and innovation.

The right solutions are needed to achieve the economic growth and job creation Americans expect and work hard to achieve.

INTRODUCTION

The next administration should focus onnine subject areas:

SUBJECT AREASSTRUCTURAL REGULATORY REFORM CAPITAL FORMATION AND FINTECH

INTERNATIONAL COORDINATION LITIGATION REFORM AND RESTORING DUE PROCESS

SYSTEMIC RISK SEC ENFORCEMENT REFORM

RETIREMENT SAVINGS CONSUMER PROTECTION

FINANCIAL REPORTING, CORPORATE GOVERANNCE, AND DISCLOSURE REFORM

Critical bi-partisan reforms for the next administration:

1. Create a Presidential Commission on Financial Regulatory Restructuring;

2. Negotiate to reconstitute the Financial Stability Board;3. Create a bi-cameral committee to study the FinTech

landscape;4. Calculate the cumulative impact of current financial

regulations;

THE FIRST 100 DAYS

ACTION PLAN

Critical bi-partisan reforms for the next administration:

5. Hold hearings on modernizing the regulatory process;6. Enact legislation to reform the Fed, require

international transparency, and tailor systemic risk regulation;

7. Initiate hearings on living wills and stress test procedures; and

8. Enact a JOBS Act 2.0 package.

THE FIRST 100 DAYS

ACTION PLAN

Create a Presidential Commission on Financial Regulatory Restructuring.

Reform and place the regulatory processes of the Federal Reserve and other banking regulators on par with other agencies.

PRINCIPAL RECOMMENDATIONS

STRUCTURAL REGULATORY REFORM

Modernize rule writing through enhanced economic analysis and examination of existing regulations before creating new ones.


STRUCTURAL REGULATORY REFORM

Reconstitute the Financial Stability Board through a treaty to create transparent and accountable regulatory and designation processes.


INTERNATIONAL COORDINATION AND PROCESS

Reform the Financial Stability Oversight Council and clarify use of systemic risk designations and regulation.

Provide relief for small, medium, and regional banks from enhanced regulations and tailor systemic risk regulation to nonbank business models.


SYSTEMIC RISK

Conduct a study of major regulatory initiatives for cumulative impacts on all institutions, their customers, and economic growth.


SYSTEMIC RISK

Restructure the Consumer Financial Protection Bureau into a commission and place it under congressional oversight through appropriations.


CONSUMER PROTECTION

Congress should enhance capital formation by passing a JOBS Act 2.0 package.

Congress should create a special bi-cameral committee to study the FinTech landscape and its policy recommendations.


SYSTEMIC RISK

Repeal the Department of Labor’s fiduciary duty rule and replace it with a Security and Exchange Commission uniform fiduciary standard rule.


RETIREMENT SAVINGS

Create a Financial Reporting Forum to identify and address emerging financial reporting issues.

Reform corporate governance 14a-8 rules and modernize shareholder resubmission thresholds.


FINANCIAL REPORTINGCORPORATE GOVERNANCE

Congress and the SEC should create fair due process by creating rights of discovery, right of removal in complex cases, and preservation of right to jury trial.


SEC ENFORCEMENT REFORM

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