Experts at Chamber Event Call for Simpler Financial Regulations

There must be improvements to the capital markets regulatory structure to protect businesses from another financial crisis such as the subprime mortgage collapse, according to panel of experts from the financial, policy, and academic sectors speaking at a May 28 event hosted by the U.S. Chamber.

The speakers, which included former SEC Commissioner Annette L. Nazareth, emphasized the importance of fair, simplified, transparent, and strictly enforced regulations that are not cumbersome to market growth. Eugene A. Ludwig of the Promontory Financial Group called for equal regulation of large and small financial institutions. He warned that the current regulatory structure was beginning to lean in favor of big businesses, as evidenced by the Bear Sterns bailout in March. Peter J. Wallison of the American Enterprise Institute added that the perception that the government will not allow large financial companies to fail might cause investors to gravitate toward large firms that promise high returns on risky investments.

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