WASHINGTON, Feb. 10 /PRNewswire/ -- Saying that US industrial leadership
in financial services is threatened by archaic laws "written at a time when
high technology meant talking pictures," Merrill Lynch Chairman and CEO David
H. Komansky today called on Congress to enact financial services regulatory
reform.
Testifying before the House Banking Committee, Mr. Komansky said "the
realities of the marketplace haven't squared very well with the narrow view of
financial services" presented by the Glass-Steagall Act, which "divided
America's financial industry into neat boxes, determined by product.
"Today our clients -- your constituents -- increasingly find that their
most precious commodity is time. They demand convenient, one-stop shopping to
meet their financial needs, from checking and savings accounts to mortgages
and estate planning.
"But thanks to our out-dated laws, financial firms have only been able to
meet these needs by becoming corporate contortionists. We're forced to
exploit loopholes, or look to regulators of the courts for latitude to enter
another industry's turf. This is not only inconvenient and costly to
consumers, it has given our foreign competitors an unfair advantage. No other
industrialized country still regulates its financial system this way," Mr.
Komansky said.
Noting that today, all segments of the US financial services industry --
banks, insurance companies and securities firms -- support regulatory
modernization, Mr. Komansky called on Washington policymakers to put aside
their differences and seize a "unique opportunity to preserve American
financial leadership."
"I am confident you will act, because of the constituency for
modernization. It includes every American who owns a mutual fund, who
purchases an annuity, who wants a checking account with a good interest rate,
or who holds an insurance policy," he said.
Merrill Lynch is one of the world's leading financial management and
advisory companies with offices in more than 45 countries and total client
assets of approximately $1.4 trillion. As an investment bank, it is the top
global underwriter and market maker of debt and equity securities and a
leading strategic advisor to corporations, governments, institutions, and
individuals worldwide. Through Merrill Lynch Asset Management and Merrill
Lynch Mercury Asset Management, wholly owned subsidies, the company is one of
the world's largest managers of financial assets.
SOURCE Merrill Lynch & Co., Inc.
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CONTACT:
James R. Wiggins of Merrill Lynch,
212-449-7280
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