U.S, bank regulators testify on financial reform

WASHINGTON (Reuters) - The following are highlights from a Senate Banking Committee hearing on Thursday on financial reform. Federal Reserve Chairman Ben Bernanke, SEC Chairman Mary Shapiro, Treasury Deputy Secretary Neal Wolin, FDIC Chairman Sheila Bair, CFTC Chairman Gary Gensler and acting Comptroller of the Currency John Walsh testify.

SENATE BANKING COMMITTEE CHAIRMAN CHRISTOPHER DODD ON TURF FIGHTING

"We certainly expect the members of the oversight council to share information and to cooperate and to create an atmosphere where any agency is free to contribute in all of this. This organization is not intended to be a top down but rather a collective gathering of equal partners in all of this. I would expect that no one would hide behind the work of the Fed or the Treasury nor to be intimidated by it. I say that respectfully but obviously Treasury and the Fed have been very dominant players in all of this but what I want to have happen here is that level of cooperation where each of you have a responsibility to bring your designated knowledge and expertise to the table and that that information is shared - creating a new culture."

"One of the problems in the past is I can't legislate culture, none of us can."

"We can designate responsibilities but beyond that it ultimately depends upon the leadership of the respective agencies to create that culture."

BAIR ON COOPERATION BETWEEN AGENCIES:

"Certainly coordination is an important function too but I think people of goodwill will work collaboratively together and share information and respect each others respective spheres of expertise to get this work done. I think if we all start trying to rewrite each others rules, though, this council will become an impediment not a way to facilitate reform."

GENSLER ON NEED FOR MORE FUNDING TO IMPLEMENT RULES:

"Though we do have the resources to publish the rules and move forward on the rules, we do recognize we will need significantly more resources about a year from now to actually implement these."

SCHAPIRO ON WORKING WITH EU:

"The European Union is broadly consistent with Dodd-Frank." "I don't think there is any question about it, when we lead as the largest market in the world other countries look very carefully at what we've done."

GENSLER ON MAY 6 SUPPLEMENT REPORT:

"Within the next couple of days, I think we'll put out this May 6 supplemental report. There are a lot of lessons in there too."

GENSLER ON AGENCY'S PRIORITY FOR FSOC:

"One thing that we see over the many months ahead is to designate some clearinghouses to be systemically relevant. We currently oversee 14 clearinghouses, we think that might grow to 20 or so, but some small handful would be so important ... the council would designate them."