U.S. Senator Judd Gregg (R-NH), a member of the Senate Banking Committee and the joint House-Senate Committee of Conference on financial regulatory reform, today issued the following statement upon conclusion of the conference committee's negotiations.
Senator Gregg stated, "Nearly two years after the onset of one of the most serious economic meltdowns in our nation's history, we finally have wrapped up conference proceedings on the Majority's financial regulatory reform bill. Ironically, the most remarkable feature of this supposedly comprehensive measure is its failure to substantively address the root causes of the 2008 crisis -- shoddy underwriting practices and the government sponsored enterprises, Fannie Mae and Freddie Mac. The legislation also includes extraneous provisions which have little to do with preventing another financial crisis, such as the new Consumer Protection Agency, and more to do with carrying out the cause of the moment for politically driven special interest groups. Furthermore, the provisions on derivatives, capital requirements and the Volcker rule will lead to less lending, reducing the ability of American families and small businesses to access credit at a reasonable cost.
"In an effort that should be geared toward correcting deficiencies in our regulatory structure, and during a time when we should be focused on economic recovery, this legislation is a failure on both counts. It will not encourage much-needed stability and confidence in our financial markets. It will not significantly reduce systemic risk in our financial sector.
"On top of our country's mounting debt and deficits and the Administration's tax increases, this proposal is another step backward in our efforts to create jobs and revive the economy."