Rep. Scott Garrett (R-NJ), Chairman of the House Financial Services Subcommittee on Capital Market and Government-Sponsored Enterprises, delivered the following opening statement today at a Financial Services Committee hearing to examine international regulatory coordination:
"As far as international coordination on financial reform is concerned, let's just say that we are a long way from the solidarity displayed by the G-20 in Pittsburgh in 2009.
"Some substantial differences are beginning to emerge between Dodd-Frank's financial reforms and those of the rest of the world. Instead of "you lead on reform and we will follow'; it's now "you lead and we will pick and choose how we want to follow.'
"Dodd-Frank has the Volker Rule, they don't; Dodd-Frank requires multi-dealer exchange trading of swaps, they don't; Dodd-Frank wants pension funds to tie up retirement money as collateral for trades; they don't -- and this list of differences is not exhaustive.
"This country now risks capital and jobs going overseas and severely impairing the global competitiveness of U.S. financial markets. The overreaching policies codified in Dodd-Frank have incentivized other countries to increase their taxable revenue through strategic regulatory arbitrage.
"The cumulative impact of all these new regulations may be hard to measure, but that is precisely what the FSOC must undertake to do. What is the total cost of all this additional regulation in the form of jobs and economic growth? Which of these regulations actually address real problems and which ones simply add costs? This type of economic and cost-benefit analysis must be done. The stakes are too high to get this wrong."