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

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

In a letter to the president, Sen. Chris Dodd, D-Conn., Senate Banking Committee chairman, and Rep. Barney Frank, D-Mass., House Financial Services Committee chairman, also endorsed the core principles for modernizing the financial regulatory system recently articulated by the president and Treasury Secretary Timothy Geithner.

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

"We also recognize that the mobility of capital means that, while the ultimate decision as to what rules to adopt is a sovereign decision of each individual nation, success in this effort requires us to consult closely with other major financial centers with the goal of achieving appropriate coordination and minimizing any opportunities for regulatory arbitrage," the letter said.

"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 governance and executive compensation of financial institutions.

"We will continue to work together with your administration to ensure a new corporate governance framework which demands strict accountability of executives and promotes long-term value and growth for shareholders, companies, workers and the economy at large," it added.

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