Warning Against an Overreach of New Financial Regulations

From Reuters, “Manufacturers warn on wide US financial reform net“:

WASHINGTON, March 3 (Reuters) – A group of manufacturers and other non-banking firms on Thursday urged the U.S. Congress to prevent financial reforms from inadvertently sweeping in businesses outside the financial sector.

The Main Street Industry Alliance, a new lobbying coalition, said in a statement that certain reforms being proposed “could create unintended consequences … because the term ‘financial activities’ is so broad.”

On Feb. 26, the alliance sent a letter to Sens. Chris Dodd (D-CT) and Sen. Richard Shelby (R-AL) of the Senate Banking Committee outlining business’ concerns. From the letter:

We do not believe that it is the intent of Congress to impose a new regulatory regime on
companies that had nothing to do with the financial crisis of 2008. We strongly urge you to
ensure that any financial services reform legislation clarifies that companies that are not
predominantly engaged in financial services activity are not covered in the legislation. To do
otherwise could subject a wide range of non-financial American businesses to an array of new
regulations and capital requirements, create uncertainty, divert resources from economically
productive activities, and make these companies less competitive in the global marketplace.

Representatives from the following groups signed the letter: National Association of Manufacturers, U.S. Chamber of Commerce, Industrial Energy Consumers of America, National Petrochemical & Refiners Association, and The Fertilizer Institute.

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