The National Association of Manufacturers has joined a letter from a dozen major industry groups objecting to corporate government provisions proposed in financial regulation legislation. From the letter:
The undersigned organizations and institutions represent hundreds of thousands of businesses, small and large, from all sectors of the economy employing tens of millions of Americans, as well as non-profit public policy groups interested in fostering entrepreneurship and shareholder return for retail investors.
Our organizations strongly support legislative and regulatory reform that will protect investors, improve the effectiveness of financial regulators, and assist capital formation. Reform that adheres to these goals is an important response to the financial crisis and necessary to spur real economic growth. In our view, the so-called “corporate governance” provisions, Title IX, Subtitle E (sections 951 through 959) and Subtitle G (sections 971 through 974) of the “Restoring American Financial Stability Act,” do not further these objectives and, for that reason, we oppose their inclusion in financial services reform legislation.
As you know, there is no evidence that the issues addressed by these provisions were responsible for the financial crisis. Moreover, we believe that their enactment will lead to serious unforeseen (and unforeseeable) consequences that will inhibit job creation, endanger the ongoing economic recovery, and prevent the American economy from reaching its full potential.
Wall Street Journal blog, “Business Groups, Obama Administration Spar Over Corporate Governance“
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