The Securities Industry and Financial Markets Association released a statement from president and ceo Timothy Ryan, Jr. in response to President Obama’s speech today on financial developments of the past year.
“We in the financial services industry embrace the President’s call to take responsibility in helping reform our regulatory system and avoid future crises. Last October, we began that process by advocating for the creation of additional authorities to protect the entire financial system from systemic risk. The industry continues to engage with the Obama Administration, Congress, as well as regulators and other stakeholders on these meaningful reforms to restore confidence and stability in our financial markets
“First, to ensure the long-term stability of our system, we agree with the Administration that it is vital that we create a systemic risk supervisor that would identify systemic risk through its oversight across all markets and all market participants.
“In addition, we must expand resolution authority to empower regulators to wind down failing firms in an orderly manner that protects the entire financial system, as well as creditors and investors. We recognize no one firm should be able to put the entire financial system at risk. The Administration’s proposal is a good starting place on a complex issue,"
“These two priorities are central to the goal of protecting our financial system to ensure that it functions in support of the broader economy. We are determined to be a constructive player in the ongoing policy debates. Working together with the Administration, we will help lead the way to economic recovery for our nation.”
