November 03, 2008

Congress began holding hearings to lay the groundwork for legislation that would reform regulation of the financial industry.” This is not an easy task,” said Sen. Christopher Dodd, D-Conn., as he convened an Oct. 16 hearing of the Senate Banking Committee. The hearing was the first of many his committee plans to hold to determine what caused the current crisis in the financial markets and what needs to be done to prevent similar problems in the future.

Legislation will have to wait until a new president takes office, but Dodd said it is important to get started on the issue now. The House Financial Services Committee held a hearing on financial regulatory reform Oct. 21.“The key is to find the right balance in regulation,” said Steve Bartlett, chief executive officer of the Financial Services Roundtable. “We need a system that provides market stability and integrity, yet encourages innovation and competition to serve consumers and meets the needs of a vibrant and growing economy