Contact: Barbara Riley
Friday, September 19, 2008

WASHINGTON, DC – United States Senator John Sununu (R-NH) today (8/19) issued the following statement on the financial markets:
       
“The most important steps taken by the Treasury today will bring security and stability to the money market funds used by millions of families and businesses across America. Additional proposals will ensure access to capital and liquidity at all levels of the economy during this unprecedented credit crisis. It’s essential that each of these actions has a clear purpose, is applied consistently across the markets, remains protected from political influence, and is temporary.

“These guidelines will help ensure that taxpayers’ interests are placed first today and in the longer term. As our economy strengthens over time, any gains received by the Treasury Department from any of these programs should be used to pay down the federal debt, not to increase government spending.

“Six months ago, the Treasury Secretary put forward a detailed plan for fundamental overhaul of our financial services regulations. Over the past six years, I have authored several pieces of legislation to strengthen and modernize federal regulations for both the mortgage finance and insurance industries. Several of these proposals are part of the Secretary’s blueprint for regulatory modernization, and as I indicated six months ago, we must move forward as quickly as possible to bring our regulatory structure into the 21st Century.”

Background:

• On July 31, 2003, Sununu first introduced legislation (S. 1508) to strengthen and improve the oversight of Fannie Mae and Freddie Mac. This bill aimed to provide Fannie and Freddie with a regulator with the expertise, capability, and tools to ensure their safety and soundness. The bill passed the Banking Committee in April 2004.

• On March 31, 2008, United States Treasury Secretary Henry Paulson released a series of financial regulatory reforms in the “Blueprint for a Modernized Financial Regulatory Structure.” Sununu issued the following statement at that time:
  
  "Effective and efficient regulation ensures safety, soundness, and confidence in financial service firms and our capital markets. Despite some modernization efforts during the past decade, America’s financial service regulations remain fragmented, and in many cases operate under structures designed in the 1930’s.
  
  "The Federal Reserve should be given greater powers to address systemic risk within our largest financial institutions. The shear number of regulatory organizations should be reduced and areas of duplication and confusion need to be eliminated.”

• On April 5, 2006, Sununu introduced legislation – “The National Insurance Act of 2006” - to create a federal role for oversight of the insurance industry. This insurance reform effort was included as part of Secretary Paulson’s Blueprint.

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