ICI, Other Associations Supports Legislative Measure on American Financial Services Competitiveness

Washington, DC, April 24, 2007 - The Institute and seven other financial services associations supported a resolution concerning the need to address the competitiveness of the U.S. capital markets.

Background
Senators Michael Crapo (R-ID) and Chuck Schumer (D-NY) included an amendment to S. 761, the America COMPETES Act, that calls attention to challenges facing U.S. financial markets. The amendment highlights findings that U.S. capital markets are losing their competitive edge in the face of intensifying global competition in initial public offerings (IPOs), over-the-counter (OTC) derivatives, securitization, and traditional lending. It also expresses the "sense of the Senate" about what steps should be taken to bolster the competitiveness of this essential sector of the U.S. economy.

ICI Position
The joint letter supports the resolution, citing the need for proactive measures to help preserve America's leadership position in the global financial services marketplace. The letter notes that "in key areas, the United States is falling behind foreign competitors to the long-term detriment of America's business, workers, and citizens."

The letter expresses agreement with the resolution's call for Congress, the President, industry leaders and other stakeholders to take the necessary steps to restore America's leadership position in the global financial services marketplace. For example, the resolution urges financial services regulators to not impose unwarranted regulations which may have an adverse affect on innovation, or which have costs that exceed the expected benefits, while upholding the highest standards of investor protection.

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