S.Amdt. 256

SA 256. Mr. CRAPO submitted an amendment intended to be proposed by him to the joint resolution H.J. Res. 20, making further continuing appropriations for the fiscal year 2007, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

“SEC. __. SENSE OF THE SENATE REGARDING REPORTS ON CAPITAL MARKETS.

“(a) Findings.--The Senate finds that--

“(1) the Interim Report of the Committee on Capital Markets Regulation (published in November 2006) and the McKinsey Report on New York Competitiveness (published in January 2007) have expressed concerns that United States capital markets are losing their competitive edge in intensifying global competition, both reports adding considerably to the understanding of the challenges that American capital markets face and offer solutions that could help American markets, companies, and workers to better compete;

“(2) according to the Committee on Capital Markets Regulation, ‘A key measure of competitiveness, one particularly relevant to the growth of new jobs, is where new equity is being raised--that is, in which market initial public offerings (IPOs) are being done. The trend in so-called “global” IPOs, i.e., IPOs done outside a company's home country, provides evidence of a decline in the U.S. competitive position. As measured by value of IPOs, the U.S. share declined from 50 percent in 2000 to 5 percent in 2005. Measured by number of IPOs, the decline is from 37 percent in 2000 to 10 percent in 2005.';

“(3) according to the McKinsey Report on New York Competitiveness, ‘London already enjoys clear leadership in the fast-growing and innovative over-the-counter (OTC) derivatives market. This is significant because of the trading flow that surrounds derivatives markets and because of the innovation these markets drive, both of which are key competitive factors for financial centers. Dealers and investors increasingly see derivatives and cash markets as interchangeable and are therefore combining trading operations for both products. Indeed, the derivatives markets can be more liquid than the underlying cash markets. Therefore, as London takes the global lead in derivatives, America's competitiveness in both cash and derivatives flow trading is at risk, as is its position as a center for financial innovation'; and

“(4) according to the Committee on Capital Markets Regulation, ‘Maximizing the competitiveness of U.S. capital markets is critical to ensuring economic growth, job creation, low costs of capital, innovation, entrepreneurship and a strong tax base in key areas of the country. Regulation and litigation play central roles in protecting investors and the efficient functioning of our capital markets, particularly in light of recent, highly publicized abuses. Yet excessive regulation, problematic implementation and unwarranted litigation--particularly when occurring simultaneously--make U.S. capital markets less attractive and, therefore, less competitive with other financial centers around the world.'.

“(b) Sense of the Senate.--It is the sense of the Senate that--

“(1) Congress, the President, regulators, industry leaders, and other stakeholders should carefully review the Interim Report of the Committee on Capital Markets Regulation (published in November 2006) and the McKinsey Report on New York Competitiveness (published in January 2007), and take the necessary steps to reclaim the preeminent position of the United States in the financial services industry;

“(2) the Federal and State financial regulatory agencies should, to the maximum extent possible, coordinate activities on significant policy matters, so as not to impose regulations that may have adverse unintended consequences on innovativeness with respect to financial products, instruments, and services, or that impose regulatory costs that are disproportionate to their benefits, and, at the same time, ensure that the regulatory framework overseeing the United States capital markets continues to promote and protect the interests of investors in those markets; and

“(3) given the complexity of the financial services marketplace today, Congress should exercise vigorous oversight over Federal regulatory and statutory requirements affecting the financial services industry and consumers, with the goal of eliminating excessive regulation and problematic implementation of existing laws and regulations.