Chamber bashes passage of Wall Street reform bill

U.S. Chamber of Commerce President Tom Donohue sharply criticized Senate passage of the Wall Street reform bill, saying the move was more about political posturing that will eventually drive capital offshore.

"If you want to drive capital out of the United States, this is your bill," he said in prepared remarks. "This process was about political sound bites rather than sound economic policy."

On Thursday, the Senate passed the Restoring American Financial Stability Act of 2010 by a 59-39 vote. The legislation is considered to be the biggest restraint placed on the finance industry since the Great Depression.

Donohue claims restraints in the bill will result in a significant drain on working capital as U.S. corporations meet new compliance standards instead of using the revenue to grow their business and create jobs.

"In a global economy, capital goes where it is welcome," he said. "[We] have taken a significant step in the wrong direction and it will put American companies and our financial system at a competitive disadvantage, to the detriment of our long-term economic growth."

Donohue hopes to work with lawmakers in the upcoming conference on the bill to fix some of the provisions he finds most troubling.

The Chamber believes the bill's consumer protection agency reaches too far by affecting businesses that had nothing to do with the financial crisis. Also, the derivatives market will be negatively affected by the legislation.

"We will work with members of Congress from both parties during the conference process to bring the right reforms to the system and restore certainty in our market," Donohue said. "We cannot afford to do anything less."