Washington, DC – U.S. Representative Judy Biggert (R-IL-13th) today participated in a House Financial Services Committee hearing aimed at reforming the financial regulatory system and accelerating economic recovery. At the hearing, members of the financial services industry, economists, and financial experts were questioned on how best to overhaul America’s current regulatory structure to restore integrity and stability in our financial markets.
“Clearly, the current outdated regulatory structure isn’t keeping up with the rapidly evolving financial markets,” said Biggert. “Irresponsible actors like AIG engaged in exotic financial investments without proper oversight, and taxpayers were left holding the bag. This cannot be allowed to happen again. We need to overhaul and streamline our regulatory structure to keep a lid on Wall Street’s excesses.”
Biggert, who serves as the Ranking Member of the Financial Institutions and Consumer Credit Subcommittee, for years championed tighter regulations of financial institutions such as Fannie Mae and Freddie Mac. She helped secure passage of bills through the House in 2005 and 2008 that would have reined in the mortgage giants, although action was slowed in the Senate. She also helped secure passage and enactment of a bill in 2006 to reform credit rating agencies -- reforms that the Securities and Exchange Commission (SEC) is still in the process of implementing.
“Given the current market volatility, there’s a much stronger bipartisan consensus that major changes are urgently needed,” said Biggert. “We need regulators that are capable of ensuring that reckless financial institutions and market practices don’t create a systemic risk to our economy.”
Topics at the hearing included financial institutions that are too big or too interconnected to fail. Also discussed were capitol requirements, regulatory consolidation, credit default swaps, international regulatory reforms, and the potential formation of a select committee on reform. Biggert questioned witnesses regarding Treasury Secretary Paulson’s initial blueprint for reform which would create three consolidated regulators focused on stability, soundness, and investor and consumer protection.
“We want input from every side of this,” said Biggert. “Getting this economy back on track is our first priority, and Congress needs to get it done right – and soon.”
To read more about the hearing or to view the webcast, visit http://financialservices.house.gov/hearings_all.shtml.
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