JacksonianBME
05-14-2010, 07:37 AM
I wrote a message to my home state senator in Tennessee, Mr. Corker, around a month and a half ago about the financial regulation reform he was working on with Mr. Dodd. My email to him mostly expressed my concern about not having a comprehensive audit of the fed and how if these TBTF institutions would have failed, their market share would have been bought up by better institutions. I just got a response today:
Dear Mr. __________,
Thank you for contacting my office regarding financial regulatory
reform. Your input is important to me, and I appreciate the time you
took to share your thoughts.
For the past year, the Senate has been working to craft a bill for
financial services regulatory reform. Several proposals have been put
forth, including those passed by the House of Representatives and the
most recent proposal from Senator Chris Dodd. Unfortunately, I fear that
many of these proposals fail to appropriately address the issues
surrounding the financial crisis in 2008. That is why I began working
with Senator Dodd earlier this year to try to find common ground on some
critically important provisions that are contained in this reform
package. While we had very productive negotiations, Senator Dodd felt
the need to move forward and introduce legislation that does not yet
reflect my goals for regulating the financial system.
I believe any comprehensive regulatory package should end the notion
that any company is "too big to fail", better regulate the
over-the-counter derivatives market, improve mortgage underwriting
standards, and enhance consumer protections in a way that doesn't
negatively impact the availability of credit to businesses and
consumers. I also believe that passing a good bill is imperative to
creating jobs in our country and building consumer confidence. Right now
banks are reluctant to lend because they don't know the rules of the
game. If banks aren't lending, then businesses aren't investing, and
without investment, real private sector jobs can't be created.
As it relates to enhancing oversight and transparency over the Federal
Reserve System, I believe the financial reform bill addresses this issue
in several ways. There are provisions in the current version of the bill
which expand the GAO audit authority to all emergency lending facilities
that were set up to address the recent financial crisis. The bill also
limits the Federal Reserve's emergency lending capabilities to prevent
the type of lending we saw with AIG and Bear Stearns. Further, greater
accountability is required of the Fed by making the President of the
Federal Reserve Bank of New York a presidentially appointed official. I
believe that these provisions are important in ensuring Congress is able
to fulfill its duty of providing greater oversight over the Federal
Reserve System.
In their current forms, I cannot support either the House passed version
or the Dodd bill, but I am committed to ensuring we address the
challenges facing our financial system. Please know that over the next
few weeks and months, I will be working with my colleagues in the Senate
to strike an appropriate balance with this extremely important and
highly complex piece of legislation, and the insight you have given here
will help me and my staff more effectively work on this legislation.
Thank you again for your letter. I hope you will continue to share your
thoughts with me as I serve you in the United States Senate.
Sincerely,
Bob Corker
United States Senator
Thoughts?
Dear Mr. __________,
Thank you for contacting my office regarding financial regulatory
reform. Your input is important to me, and I appreciate the time you
took to share your thoughts.
For the past year, the Senate has been working to craft a bill for
financial services regulatory reform. Several proposals have been put
forth, including those passed by the House of Representatives and the
most recent proposal from Senator Chris Dodd. Unfortunately, I fear that
many of these proposals fail to appropriately address the issues
surrounding the financial crisis in 2008. That is why I began working
with Senator Dodd earlier this year to try to find common ground on some
critically important provisions that are contained in this reform
package. While we had very productive negotiations, Senator Dodd felt
the need to move forward and introduce legislation that does not yet
reflect my goals for regulating the financial system.
I believe any comprehensive regulatory package should end the notion
that any company is "too big to fail", better regulate the
over-the-counter derivatives market, improve mortgage underwriting
standards, and enhance consumer protections in a way that doesn't
negatively impact the availability of credit to businesses and
consumers. I also believe that passing a good bill is imperative to
creating jobs in our country and building consumer confidence. Right now
banks are reluctant to lend because they don't know the rules of the
game. If banks aren't lending, then businesses aren't investing, and
without investment, real private sector jobs can't be created.
As it relates to enhancing oversight and transparency over the Federal
Reserve System, I believe the financial reform bill addresses this issue
in several ways. There are provisions in the current version of the bill
which expand the GAO audit authority to all emergency lending facilities
that were set up to address the recent financial crisis. The bill also
limits the Federal Reserve's emergency lending capabilities to prevent
the type of lending we saw with AIG and Bear Stearns. Further, greater
accountability is required of the Fed by making the President of the
Federal Reserve Bank of New York a presidentially appointed official. I
believe that these provisions are important in ensuring Congress is able
to fulfill its duty of providing greater oversight over the Federal
Reserve System.
In their current forms, I cannot support either the House passed version
or the Dodd bill, but I am committed to ensuring we address the
challenges facing our financial system. Please know that over the next
few weeks and months, I will be working with my colleagues in the Senate
to strike an appropriate balance with this extremely important and
highly complex piece of legislation, and the insight you have given here
will help me and my staff more effectively work on this legislation.
Thank you again for your letter. I hope you will continue to share your
thoughts with me as I serve you in the United States Senate.
Sincerely,
Bob Corker
United States Senator
Thoughts?