CongressionalHearings/Dodd-Frank/CHRG-111hhrg48873/CHRG-111hhrg48873--14.txt The Department of the Treasury , the Federal Reserve , and the Federal Reserve Bank of New York acted to prevent the collapse of AIG . CongressionalHearings/Dodd-Frank/CHRG-111shrg50815/CHRG-111shrg50815--117.txt Delinquencies on credit card accounts have significantly increased as a result of rising unemployment and uncertainty in the economy . CongressionalHearings/Dodd-Frank/CHRG-111shrg55479/CHRG-111shrg55479--138.txt Regulatory failure by the banking regulators and the SEC in setting appropriate risk-based capital reserve requirements for investment and commercial banks ; iv . CongressionalHearings/Dodd-Frank/CHRG-111shrg56262/CHRG-111shrg56262--95.txt Credit risk reflects the borrower 's financial situation , the terms of the loan and the value of the home . CongressionalHearings/Dodd-Frank/CHRG-111shrg56262/CHRG-111shrg56262--95.txt Regulators should promulgate additional regulations to align compensation of market participants with longer term performance of the underlying loans . CongressionalHearings/Dodd-Frank/CHRG-111shrg54589/CHRG-111shrg54589--137.txt Secretary Geithner recognized that multiple Federal regulatory agencies should play critical roles in implementing the proposed framework , including the SEC and the CFTC . CongressionalHearings/Dodd-Frank/CHRG-111shrg56262/CHRG-111shrg56262--90.txt Overreliance on Credit Ratings -- Poor disclosures and overly complex deals caused investors to over rely on credit ratings . CongressionalHearings/Dodd-Frank/CHRG-111shrg54589/CHRG-111shrg54589--3.txt I understand the desire of firms to hedge their risks , whether those risks are interest or exchange rates , commodity prices , credit exposure , or something else . CongressionalHearings/Dodd-Frank/CHRG-111shrg50815/CHRG-111shrg50815--116.txt As an initial matter , it is important to emphasize that the Federal Reserve 's new regulations do not prohibit risk-based pricing . CongressionalHearings/Dodd-Frank/CHRG-111shrg54589/CHRG-111shrg54589--149.txt Federal regulation of securities , commodities , exchanges , and derivatives has developed over time and reflects the evolution of the capital markets . CongressionalHearings/Dodd-Frank/CHRG-111hhrg53234/CHRG-111hhrg53234--10.txt In addition , the Federal Reserve provides the public and the Congress with detailed annual reports on the consolidated financial activities of the system . CongressionalHearings/Dodd-Frank/CHRG-111shrg56415/CHRG-111shrg56415--83.txt The results from the Federal Reserve 's Senior Loan Officer Opinion Survey on Bank Lending Practices indicate that both the availability and demand for bank loans are well below pre-crisis levels . CongressionalHearings/Dodd-Frank/CHRG-111hhrg53234/CHRG-111hhrg53234--37.txt Mr. Vice Chairman , you a moment ago articulated Congress ' mandate to the Federal Reserve with respect to maximum employment and to price stability . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--275.txt Giving some of the SEC 's duties to a systemic risk regulator or to a financial services consumer protection agency ; 2 . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--267.txt --------------------------------------------------------------------------- Public disclosure of conflict of interest information should improve transparency surrounding the information and processes used by rating agencies for rating products . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--267.txt The existing , divided regulatory approach has resulted in jurisdictional disputes between the SEC and the CFTC , regulatory inefficiency , and gaps in investor protection and market oversight . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--267.txt SEC rules also should hold shareholder proponents -- and not companies -- responsible for the disclosure those shareholders provide . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--267.txt Municipal Securities Issuer Disclosure : ICI strongly urges Congress and the SEC to improve the content and timing of required disclosures regarding municipal securities . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--267.txt \ 30 \ A member of Congress intimately involved in this debate later concurred with the SEC 's interpretation in a letter to then SEC Chairman Arthur Levitt . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--267.txt SEC Chairman Mary Schapiro recently indicated that the SEC will soon consider a proposal `` to ensure that a company 's owners have a meaningful opportunity to nominate directors . '' CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--267.txt The SEC 's announcement of a new Industry and Market Fellows Program is an encouraging step in the right direction . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--267.txt In particular , ICI recommends that the SEC expand the list of information that is required to be disclosed under current SEC rules . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--267.txt Additionally , in 2003 , the SEC staff recommended that the SEC consider eliminating the prohibition on general solicitation in offerings by certain hedge funds . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--267.txt We note that , in testimony before the House Financial Services Committee in March of this year , SEC Commissioner Elisse Walter stated that the SEC 's examination and enforcement resources are inadequate to keep pace with the growth and innovation in the securities markets . CongressionalHearings/Dodd-Frank/CHRG-111hhrg53234/CHRG-111hhrg53234--161.txt I think this loss of Federal Reserve independence is a serious issue , especially at this time of rapidly growing Federal debt and greatly expanded Federal Reserve balance sheet . CongressionalHearings/Dodd-Frank/CHRG-111hhrg53234/CHRG-111hhrg53234--161.txt My fourth concern is that by giving so much new power to the Federal Reserve , that the plan would actually threaten the Fed 's independence regarding monetary policy . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--36.txt Since the crisis began , we have discovered a limited market knowledge here in D.C. , in the Federal Reserve , Treasury , Congress , and the SEC . CongressionalHearings/Dodd-Frank/CHRG-111shrg55278/CHRG-111shrg55278--112.txt I would give the Federal Reserve clear responsibility for Macro System Stability , reporting periodically to Congress and coordinating with a Financial System Oversight Council . CongressionalHearings/Dodd-Frank/CHRG-111hhrg48874/CHRG-111hhrg48874--205.txt These are the areas I ask Congress to focus on going forward so that when economic conditions improve , institutions will return to the securitization markets . CongressionalHearings/Dodd-Frank/CHRG-111shrg56262/CHRG-111shrg56262--93.txt Views on Securitization Policy and Market Reform Initiatives Numerous policy and market reforms aimed at the securitization market have been advanced in response to the broader financial market crisis . CongressionalHearings/Dodd-Frank/CHRG-111shrg56262/CHRG-111shrg56262--93.txt \ 8 \ Overall , recent data collected by the Federal Reserve Board show that securitization has provided over 25 percent of outstanding U.S. consumer credit . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--130.txt We believe Congress should require that the SEC act as arbiter to determine whether each issuer is in compliance with their stated disclosure requirements . CongressionalHearings/Dodd-Frank/CHRG-111shrg56262/CHRG-111shrg56262--7.txt For these reasons , we need to finish the work the Federal Reserve Board began last year and adopt uniform Federal underwriting standards for mortgages that apply to all mortgage actors across the board . CongressionalHearings/Dodd-Frank/CHRG-111shrg55739/CHRG-111shrg55739--144.txt Strengthen and Build on SEC Supervision Under the authority created by this Committee in 2006 , the SEC has already begun to address many problems with rating agencies . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--262.txt SEC Staffing , Funding , and Management : The SEC has a staff of about 3,500 full-time employees and a budget of $ 900 million . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--262.txt Thus , Congress or the SEC must draw a careful line so as not to permit the clearinghouse requirement to be trivialized.Q .4 . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--262.txt This is best accomplished by making the SEC at least partially `` self-funding , '' specifically by allowing the SEC to keep the fees and other charges that it levies on issuers , brokers and other regulated entities . CongressionalHearings/Dodd-Frank/CHRG-111shrg55479/CHRG-111shrg55479--140.txt If regulation to strengthen shareholder rights does not occur at the Federal level , it will be up to the States to move forward .