Release Date: February 3, 2017
Contact: Liz Pierce, 212.313.1173, [email protected]  

SIFMA Commends Presidential Action to Review Financial Regulatory Framework 

Washington, DC, February 3, 2017 – SIFMA today released a statement from Kenneth E. Bentsen, Jr., SIFMA president and CEO, regarding the executive order from President Trump calling for review of the nation’s financial regulatory framework and its impact on the markets and the economy: 

“SIFMA has long called for a cumulative review of financial regulations including those put in place since 2008 and we commend the Trump Administration taking this action. Our capital markets are the envy of the world and also among the most regulated sectors in the U.S. economy. It is imperative to ensure that our financial regulatory framework does not unnecessarily impede capital formation that drives job creation, economic growth and investor opportunity in this country. 

“There is early evidence that regulation is negatively impacting capital markets that spur economic activity. A 2016 report by the Financial Stability Board found evidence that liquidity is declining in sovereign and corporate bond markets. The bond markets are a vital funding source for businesses looking to grow and invest in their future. A 2016 Federal Reserve report also concluded that bonds are less liquid during times of stress due to the Volcker Rule. 

“The industry has commissioned several studies to jumpstart and encourage a comprehensive regulatory review, including a 2016 Oliver Wyman report to review Basel reforms, and a 2015 report by PwC on the state of global market liquidity. Research found early warning signals that implementation of new rules is creating higher costs which are likely to be transmitted the broader economy. Europe already has initiated its own “Call for Evidence” that has led to proposed changes in the European ruleset. 

“The industry has changed dramatically over the past seven years. The capital markets are more secure and financial institutions’ balance sheets are less leveraged, more liquid, and meaningfully more resilient than ever before – in fact, capital levels have doubled since 2009. It’s now time to consider whether and how regulation may be impeding the ability to deploy capital and credit to grow the economy and create jobs.  SIFMA and its members look forward to providing our observations and recommendations to the Treasury and members of the Financial Stability Oversight Council.”

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SIFMA is the voice of the U.S. securities industry. We represent the broker-dealers, banks and asset managers whose nearly 1 million employees provide access to the capital markets, raising over $2.5 trillion for businesses and municipalities in the U.S., serving clients with over $20 trillion in assets and managing more than $67 trillion in assets for individual and institutional clients including mutual funds and retirement plans. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.