Forum Joins U.S. and EU Entities Urging TTIP to Include Full Coverage of Financial Services to Address Market Fragmentation
"As the United States (U.S.) and the European Union (EU) enter the 12th round of negotiations of the Transatlantic Trade and Investment Partnership (TTIP) the financial and related professional services industry continues to support an "ambitious, comprehensive, and high-standard trade and investment agreement. In order for TTIP to realize its full potential, we believe any agreement should treat financial services like every other sector in the negotiations and be dealt with in a comprehensive manner, primarily by including a framework for financial services regulatory cooperation but also through solutions to outstanding market access issues."
“The largest financial institutions are smaller and less complex with twice the capital and triple the liquidity since Mr. Kashkari left government to enter politics. The Fed’s stress tests show that large financial institutions can withstand a crisis far worse than 2008, and the largest banks have 'living wills' to guide an orderly wind-down without putting taxpayer money at risk. "
“Over the past five years, through legislative, regulatory, and industry-initiated changes, significant improvements have been made to strengthen the U.S. financial system. Bank capital and liquidity have more than doubled to record levels, leverage has been reduced, risk management procedures and methodologies have been improved, compensation structures have been reformed to align incentives with the safety and soundness of the institution, and large financial institutions are less complex."
"The financial services industry is committed to effective resolution and recovery planning through the living wills process. The firms have taken meaningful, concrete steps to ensure their plans are credible and that no firm is too big to fail. The living wills process builds on the many improvements that have made the U.S. financial system stronger, safer and more simple, including the doubling of capital and liquidity, and structural changes to reduce risk and streamline business models."
Brian Moynihan, Chairman of the Financial Services Forum, today issued the following statement regarding the news that Rob Nichols will be leaving his position as President and CEO of the Forum for the American Bankers Association: "Rob has been a skillful Forum leader during a consequential decade for the financial system. On behalf of the members, I thank Rob for his service and wish him continued success as an effective voice in Washington helping policymakers better understand the important role that banks of all sizes play in driving the U.S. and global economy."
"We urge policymakers to reject this tax targeting a small group of companies and instead focus on achieving broad-based, pro-growth tax reform that ensures our economic recovery continues. As the largest financial institutions continue to simplify, reduce risk and leverage, build capital, provide the credit to keep the economy growing, and make the necessary investments to protect customers from cyber threats, it would be counterproductive to layer on one more way to make it more difficult to achieve those public goals.”