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Pelosi Statement on Obama Administration Proposal to Regulate Interconnected Financial Institutions
Tuesday, March 24, 2009
Contact:Brendan Daly/Nadeam Elshami, 202-226-7616
Washington, D.C. – Speaker Nancy Pelosi issued the following statement on testimony today before the House Financial Services Committee by Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke on a proposal to regulate interconnected financial institutions.
“Today’s testimony by Secretary Geithner and Fed Chairman Bernanke in support of a systemic risk regulator and a more effective resolution process to unwind large, interconnected financial institutions that become insolvent will help us move forward in a positive way. Combined with the Obama Administration’s announcement yesterday on legacy assets, and ongoing initiatives to reduce foreclosures, these actions will help restore the flow of credit to consumers and small businesses and stabilize and strengthen our financial system.
“Congress and the Administration will be working closely together to make sure that we bring common-sense reform, taxpayer protection, accountability and transparency to the financial system.
“Chairman Barney Frank, who is leading the House’s efforts to produce bipartisan legislation to strengthen regulation of systemic risk, has held already held hearings on this issue and will hold more soon. We have spent much time, effort, and public goodwill in rescuing our financial institutions from catastrophic failure; it is now time for a new ‘cop on the beat’ to help halt the risky practices that have driven the need for government intervention.
“Through the actions that Congress and the Administration are taking, I am confident that our financial institutions will become more stable, our economy will begin to grow again, and the American people will have more confidence in investing their hard-earned dollars to secure a long-term, prosperous future.”
