The Council of Institutional Investors today called on the Department of Treasury, Federal Reserve and Congress to make restoring stability to the U.S financial markets the top priority in dealing with the credit crisis.
Broader, more fundamental reforms, while needed, should not be undertaken in the heat of the current crisis, according to a statement from the group representing public, union and corporate pension funds.
You dont rebuild a house in the middle of a hurricane, Joe Dear, CII chairman and executive director of the $78 billion Washington State Investment Board, Olympia, said in the statement. Reform of the financial regulatory system requires careful analysis of the factors that fueled the current debacle as well as global market trends. And any regulatory overhaul must ensure independent oversight of market participants, reliable and timely disclosures and, above all, robust investor protections and enforcement of the rules.
The council supports requiring pay curbs for CEOs at financial firms seeking government assistance, the statement said. Lawmakers should ensure that boards of directors have the necessary tools to effectively recapture ill-gotten gains paid to these corporate executives. the statement said.