NU Online News Service, March 31, 9:09 a.m.EDT

WASHINGTON–The chairmen of key Senate and Housecommittees have promised President Obama they will work together tohave legislation on his desk by year's end creating a "new, morerobust regulatory framework" for financial services firms.

In a letter to the president, Sen. Chris Dodd, D-Conn., SenateBanking Committee chairman, and Rep. Barney Frank, D-Mass., HouseFinancial Services Committee chairman, also endorsed the coreprinciples for modernizing the financial regulatory system recentlyarticulated by the president and Treasury Secretary TimothyGeithner.

Specifically, these concepts would provide for systemic riskregulation; strengthening consumer and investor protection;streamlining prudential supervision; and addressing gaps inregulation.

"We also recognize that the mobility of capital means that,while the ultimate decision as to what rules to adopt is asovereign decision of each individual nation, success in thiseffort requires us to consult closely with other major financialcenters with the goal of achieving appropriate coordination andminimizing any opportunities for regulatory arbitrage," the lettersaid.

"We agree that we must redouble our efforts to promote openness,transparency and plain language throughout our financial system.Such openness and transparency will benefit consumers, investors,the markets and the entire financial sector," the letter said.

Their message also mentioned executive compensation, stating:"We also support comprehensive reform of the corporate governanceand executive compensation of financial institutions.

"We will continue to work together with your administration toensure a new corporate governance framework which demands strictaccountability of executives and promotes long-term value andgrowth for shareholders, companies, workers and the economy atlarge," it added.