MOORE AND MEEKS URGE SENATE TO STRENGTHEN STRESS TEST PROVISIONS

(WASHINGTON, DC)– Congressmen Dennis Moore (Third District – Kansas) and Gregory Meeks (Sixth District – New York) called on their colleagues in the Senate today to increase transparency and toughen oversight provisions in the Senate regulatory reform package.

Moore and Meeks, both chairs of Financial Services subcommittees, expressed their concerns with the weak stress test authorization included in the Senate bill, S. 3217, in a letter to Chairman Dodd and Ranking Member Shelby of the Senate Banking Committee.

“It is vital, in order to prevent another Lehman Brothers-type collapse, that we institute tough standards for the public reporting of stress tests so regulators and the marketplace can see examples of overleveraging well ahead of time,” Congressman Moore said. “Strengthening risk management and market discipline are fundamental principles in writing new rules of the road for Wall Street.”

“Stringent, public stress tests will provide clarity and vital transparency to the market place and will enable the debt and equity markets to make informed decisions when financing institutions,” said Congressman Meeks. “Had this level of transparency been in place two years ago it is likely that we could have prevented or mitigated the impact from Lehman’s collapse.”

The two Representatives were co-authors of the Moore-Meeks Amendment included in the House-passed regulatory reform bill.


The Moore-Meeks letter to Chairman Dodd and Ranking Member Shelby is attached.
Moore is the Chairman of the Financial Services Subcommittee on Oversight and Investigations.
Meeks is the Chairman of the Financial Services Subcommittee on International Monetary Policy & Trade.