Kanjorski: Congress should take time with reg reforms

WASHINGTON (7/2/09)--Congress should "step back" and take time to "analyze the implications and the effects" of the laws and regulations that are being debated before it begins the process of legislating financial regulatory reforms, Rep. Paul Kanjorski (D-Pa.) said in a Wednesday appearance on CNBC.

Commenting on the apparent rush to regulation that is currently being led by some members of Congress, Kanjorski, who chairs the House subcommittee on capital markets, insurance, and government-sponsored enterprises, said that acting in a more deliberate fashion should ultimately "create better standards and a better performance rate.

"If it takes six more months, what does it matter?" Kanjorski asked.

Both Congress and the Obama administration have moved swiftly to begin the regulatory reform process, with the Treasury delivering on Tuesday draft legislation for the creation of the Consumer Financial Protection Agency.

Rep. Barney Frank (D-Mass.), who serves as chair of the House Financial Services Committee, has held several hearings on financial regulatory reforms in recent days, and his committee will continue to discuss this issue once Congress has returned from the Independence Day district work period on Monday. Frank recently suggested that his committee could begin marking up financial regulatory reform legislation late this month, and a full House vote could take place as soon as August.

Overall, Kanjorski said, Congress "will craft the best legislation," but the quality of that legislation does not matter if those tasked with enforcing that regulation are not "properly stimulated to implement good practices."