U.S. Chamber’s Capital Markets Summit Calls for Improved Financial Regulations

Nearly 300 Business, Government, and Academic Leaders Examine Results of Dodd-Frank Report Card

At the 6th Annual Capital Markets Summit held March 28, 2012, U.S. Chamber of Commerce President and CEO Thomas J. Donohue warned that America’s competitiveness in a global economy hangs in the balance as the nation works to modernize its financial regulatory system. Nearly 300 business, government, and academic leaders gathered at the Chamber to discuss the current status of Dodd-Frank implementation and other regulatory efforts.

“Dodd-Frank is the most expansive, complex, and intrusive financial regulation bill in history,” said Donohue. “Its implementation has a long way to go and it must be done in a way that enhances, not impedes, economic growth.”

As regulators finalize the rules most likely to impact Main Street businesses, such as derivatives, the Volcker Rule, and money market mutual fund reform, the Chamber called on regulators to cast aside politics and think about the long-term health of America’s capital markets. The Summit emphasized the need for regulators to create predictable rules of the road for businesses and to avoid implementing complex regulations that limit access to capital and hinder economic growth.

“The American dream itself depends on vibrant, fair, and strong capital markets,” Donohue said. “We want to ensure that the United States continues to attract and retain capital that is put to work to expand our economy and create jobs. Americans must have attractive options to save, invest, and secure their financial future in a transparent system with fair rules. We will continue to work with Congress and the regulators because the real winners must be Main Street USA.”

Since the passage of Dodd-Frank, the Chamber has filed more than 150 comment letters over the past year on how to improve both individual regulatory proposals and the entire system. The issues that remain a primary focus for the Chamber are addressed in the Financial Regulatory Reform 2012 Report Card that is being distributed to members of Congress, key regulators, and stakeholders. The report card, released March 27, 2012, grades progress on key regulatory reform issues. It also provides recommendations to Congress and regulators on how to bring up the grade to support a capital formation system that benefits consumers, investors, and job creators.

The report card examines regulations in four major areas:

Protecting the Diversity of Capital Formation: Regulations graded include the CFPB, derivatives, money market mutual fund reform, and the Volcker Rule.

Reforming Corporate Governance: Regulations graded include whistleblower provisions, conflict mineral disclosures, executive compensation, and proxy access.

Ensuring U.S. Competitiveness Through Financial Regulator Reform: Regulations graded include systemic risk and Financial Stability Oversight Council (FSOC), proxy advisory firms, Basel III/capital standards, and reforming the Securities and Exchange Commission (SEC).

Preserving the Integrity of Accounting and Auditing: Regulations graded include financial instrument reporting, convergence, FAS-5, lease accounting, and mandatory audit firm rotation.

Since its inception in 2007, the Center for Capital Markets Competitiveness (CCMC) has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.