A Statement from Steve Bartlett, President and CEO of The Financial Services Roundtable...

A Statement from Steve Bartlett, President and CEO of The Financial Services
Roundtable on the Release of the Treasury's Blueprint
The Roundtable Applauds Treasury's Blueprint for Regulatory Reform Stresses
the Urgent Need for a More Effective Regulatory Structure

WASHINGTON, March 31 /PRNewswire/ -- The Financial Services Roundtable
welcomes the Treasury Department's blueprint to overhaul the nation's
financial regulatory system and applauds Secretary Henry M. Paulson, Jr. for
providing a foundation upon which Congress, the Administration and the
financial services industry can work together to address the serious current
market conditions. Many of the recommendations found in the blueprint will
ensure strong, competitive financial markets which are vital to our economy,
to consumers, and to job creation.
We are encouraged that Treasury has put together a comprehensive program
with numerous long-range and immediate recommendations-many of which are
achievable during this legislative session-that will address some of the
challenges we are facing. The Roundtable is particularly pleased that the
Treasury proposal recommends the creation of an optional federal insurance
charter.
Further, we applaud the fact that this proposal is specifically attentive
to consumer protection. We believe many of the recommendations in this
blueprint, combined with other ongoing efforts, will help improve conditions
in the housing market, restore the economy and prevent such situations from
happening again in the future.
This proposal, which has been in the works for more than a year now,
follows four independent studies, including our own, that have reached similar
conclusions about how to improve our regulatory structure. Specifically, each
proposal has called for, in one form or another, a more consistent and
coordinated regulatory system, principles-based regulation, and prudential
supervision. These three reforms were important last year - but now, they are
essential to resolving the current market situation. These initiatives are
the backbone to reform.
-- A more coordinated and consistent regulatory approach - We are
encouraged that Treasury's blueprint calls for greater coordination
through an expanded President's Working Group. If better coordination
and consistency were established among the regulators a year ago,
perhaps we would not have been in the same position we are today. The
regulators would have had a chance to coordinate amongst each other -
to prepare for the current situation.

-- A call for principles-based regulation - It is encouraging to see that
the Secretary has introduced the notion of principles-based
regulation. Specifically, the Secretary's plan uses the term
"objective-based regulation" instead of "principles-based regulation,"
but the point is the same - to create a regulatory focus on outcomes.

-- A move toward prudential supervision - The Secretary has offered a
roadmap to significantly strengthen prudential supervision that can be
embraced and implemented by all financial regulators to ensure
ongoing, constructive engagement with regulated firms on critical
compliance issues.

-- A sense of urgency - The Secretary has noted that there is a sense of
urgency to act. The events of the last six months have demonstrated
the risk of not having a sufficiently coherent regulatory structure.
The urgency of the situation in the capital markets is significant;
there is a liquidity problem and a regulatory structure that needs
correcting. Current market conditions underscore the urgent need for
reform, particularly for more coordination among regulators. However,
we strongly recommend that Congress does not overreact and that any
action is deliberate and well thought out.

-- The need for thoughtful action, not rushed reaction -While Congress
and the Administration should act without haste, it is imperative that
all parties thoughtfully consider this matter and arrive at a measured
response that is both deliberate and well thought out.

While there is significant work to be done, we believe there are some
vital improvements that can, and should be, realized immediately to improve
our current economic condition. The Roundtable has drafted legislation that
calls for a more consistent and coordinated regulatory system, principles-
based regulation, and prudential supervision. We believe these crucial reforms
can be achieved this year.
Again, we congratulate Treasury Secretary Paulson for the strong
foundation put forth in the Treasury's blueprint. The Roundtable stands ready
to work with Congress and the Treasury to help implement these much needed
reforms and to ensure they benefit from affirmative, bi-partisan support.
The Financial Services Roundtable represents 100 of the largest integrated
financial services companies providing banking, insurance, and investment
products and services to the American consumer. Member companies participate
through the Chief Executive Officer and other senior executives nominated by
the CEO. Roundtable member companies provide fuel for America's economic
engine, accounting directly for $66.1 trillion in managed assets, $1.1
trillion in revenue, and 2.5 million jobs. The Roundtable and the Housing
Policy Council have partnered with other industry leaders to form HOPE NOW.
HOPE NOW is an alliance between counselors, mortgage market participants, and
mortgage servicers to create a unified, coordinated plan to reach and help as
many homeowners as possible.
SOURCE The Financial Services Roundtable

John Doyle, +1-703-447-1124, or Jennifer Smith, +1-202-589-2426, both for The
Financial Services Roundtable