jueves, 25 de julio de 2013

Statement by AFL-CIO Sec.-Treas. Richard Trumka on Regulatory Reform Proposal

http://www.aflcio.org/Press-Room/Press-Releases/Statement-by-AFL-CIO-Sec.-Treas.-Richard-Trumka-on


Statement by AFL-CIO Sec.-Treas. Richard Trumka on Regulatory Reform Proposal

Today’s Department of Treasury blueprint for regulatory reform broaches the issue of much needed financial market reform.  However, it fails to provide either the transparency or regulation required for genuine financial market integrity.  Nor does it do anything to resolve the current financial and economic crisis. 
The Department of Treasury proposes both weakening the SEC’s enforcement philosophy and substantially stripping it of the power to regulate investment banks. That’s a mistake for our nation’s economy, and a mistake for America’s working families.   Investors - - including workers with pensions and families with college savings - - need a strong SEC with comprehensive regulatory authority over the capital markets.
More broadly, the crisis in our capital markets is a symptom of a larger economic crisis.
The nation’s policymakers should take immediate steps to resolve the mortgage foreclosure crisis and hold those responsible accountable. There must be an immediate moratorium on foreclosures on all subprime and adjustable rate mortgages. The mortgage industry and the government must create a structured program providing for the replacement of teaser rate loans with conventional mortgages. 
The Federal Reserve and the SEC must fully utilize their existing powers to protect investors and consumers. Then they must be given necessary additional powers - - not fewer powers - - to restore transparency and accountability among financial market participants.  For example, Congress must give the SEC the power to regulate institutions that are currently subject to little or no regulation, such as hedge funds and private equity funds.  And Congress should recognize that at the heart of what has gone wrong with our system is the inadequate regulation of the conflicts between investment and commercial banking that were once addressed by the Glass-Steagall Act.
Financial re-regulation will not by itself restore our economy to health. That will require broad-based changes in our trade and economic policy. But thoughtful re-regulation of financial markets is part of what must be done.  We urge Congress and the regulators to act without delay to address the conflicts within financial institutions, bring transparency to opaque pools of capital, and protect investors, consumers, and the public interest in the capital markets.
Contact: Caren Benjamin 202-637-5018

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