In testimony submitted to the U.S. Senate Committee on Banking, Housing, and Urban Affairs today, Professor Michael S. Barr argues that the U.S. should not let Wall Street’s arguments for loopholes in global enforcement hamstring meaningful reform. Barr explains why global coordination is key to a safer and fairer financial system:
While the process of reaching global agreement has at times been quite messy, divisive, and incomplete, the last thing we need is to hamstring global cooperation or U.S. regulation. These mechanisms should be strengthened and improved, not ignored or weakened
Strong U.S. financial rules are good for the U.S. economy, American households and businesses, and we also need a stronger, harder push to reach global agreement on core reforms. In fact, such an approach is essential in order to reduce the chances of another devastating global financial crisis that crushes the U.S. economy.
Read Professor Barr’s full remarks here.
Author Libby Benton is the assistant executive director of the Center on Finance, Law, and Policy.