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PRESS RELEASE

FOR IMMEDIATE RELEASE
Elise Brooks, (202) 589-2427

Scott Talbott Testifies Before House Financial Services Committee on Resolution Authority

Washington, D.C.—October 29, 2009— Scott Talbott, Senior Vice President for Government Affairs at the Financial Services Roundtable, testified today before the House Financial Services Committee on “Systemic Regulation, Prudential Matters, Resolution Authority and Securitization.”

“We support greater systemic risk oversight, creating a failure resolution mechanism, more effective prudential supervision, and targeted risk retention,” Talbott said. The Roundtable testified that the House Financial Services Committee Discussion Draft on these topics was a “significant improvement” from prior proposals. However, the testimony outlined a number of concerns that the Roundtable has with the Discussion Draft, including the excessive focus on capital, the proposed 10% risk retention requirement, the divestiture of lawful affiliations and activities by identified financial holding companies, and the increased costs that additional assessments through the resolution fund and the systemic risk examinations would place on the industry.

Talbott remarked that “Broader regulatory reform—including all proposals to mitigate systemic risk in the future—is important not only to ensure that financial institutions continue to meet the needs of all consumers but to restart economic growth and much needed job creation.” Talbott cautioned, however, that in creating such reform, Congress should keep in mind that it is necessary to have a “financial system that provides market stability and integrity, yet encourages innovation and competition to serve consumers and meet the needs of a vibrant and growing economy.”

The full text of Talbott’s testimony can be found here: http://www.fsround.org/media/pdfs/HFSC_Testimony_Oct29_Talbott.pdf

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 $84.7 trillion in managed assets, $948 billion in revenue, and 2.3 million jobs.

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