A proposal for a Financial Regulation Reform Resolution

We are presenting here a suggested one page resolution supporting passage of Fair and Effective Financial Regulation Reform by Congress. The language is intentionally general since it is the principles which are the important thing in this case. You can modify the text as you wish. The important thing is to let our representatives know we are paying attention to this issue and expect real reform to emerge from Congress.
You can help develop this proposed resolution further by leaving comments, below.

Resolution Supporting Fair and Effective Financial Regulation


Whereas, the Democrats of the _____ Legislative District of Washington State believe that honest stewardship of the public money and credit is essential to social justice; and


Whereas, the Democrats of the ______ Legislative District of Washington State believe that money placed on deposit in a bank is the property of the account holder, not a capital pool for speculation by the bank, and the bank has a fiduciary responsibility to the account holders first and foremost, and that this relationship is essential to a stable, sustainable, financial system.

Further, we believe that the same principles of ownership and fiduciary responsibility of managers to account holders applies to money placed by citizens into other investing/savings vehicles which are not directly managed by the account holder, such as 401K and IRA plans, especially as participation is not entirely voluntary in many cases.

Therefore we believe that, at a minimum, the following 4 principles should be upheld in any Financial Regulation Reform passed by Congress:
1.) Full implementation of the “Volcker Rule” preventing retail banks from speculating in the financial markets with depositors funds.
2.) All investment companies that operate in public markets, including insurers, investment banks, hedge funds, banks, trusts, etc., should be subject to minimum capital requirements in order to keep financial leverage to within reasonable limits.
3.) The currently unregulated derivatives should be traded in transparent markets and participants should be required to maintain adequate capital reserves to cover their positions.
4.) The use of short term funding by investment companies that operate in public markets, including insurers, investment banks, hedge funds, banks, trusts, etc., should be subject to capital charges to reflect the higher risks involved in maintaining such investments.



Now therefore, on this the ___ Day of __________, in the year 20__, be it:



Resolved, that the Democrats of the ___ Legislative District of Washington State call upon the United States Congress to pass Financial Regulatory Reform Legislation that adheres to the above stated principles.
Be it further resolved that this resolution be transmitted to the Members of Congress representing the State of Washington.