Congressional Hearings |
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Statement of Richard Shelby
U.S. Senate Committee on Banking, Housing, and Urban Affairs
"Consideration of Regulatory Reform Proposals"
June, 22 2004
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Washington, D.C. - I want to thank everyone for being here today - and,
judging by the length of the witness list, that means a lot of “thank you’s” - so
I will offer a blanket expression of gratitude.
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But it should come as no surprise that so many witnesses are required for
consideration of regulatory reform. The reality in today’s marketplace is
that technological development and shifts in consumer demand cause
constant change in the financial services sector. This constant change, however,
occurs in an environment where laws and regulations remain relatively static.
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I believe that the tension caused by this situation makes it incumbent
upon this Committee to undertake periodic reviews of the impact that the
legal framework has on the operation of the marketplace. This entails reviewing
the objectives behind the laws to determine whether they still remain relevant. It
also requires, in the many instances where regulation is necessary, ensuring that
compliance with such regulation can be achieved in a straightforward manner.
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The bottom line is this: most financial services firms compete to
meet consumer demand and maximize profits. They are also tasked to meet
certain safety and soundness and consumer protection requirements. I believe
that it is our responsibility to ensure that the legal environment is
such that firms can effectively meet their responsibilities to both the
marketplace and to the regulatory system.
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I would like to take a moment to thank Senator Crapo for his
efforts with respect to regulatory reform. I know from past experience that
developing a legislative product takes a great deal of time, patience and effort, and I
want to commend him for the work he has done so far. I look forward to working with
him as this process continues.
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