Legislator to Draft Market Reform Bill

The chairman of the House finance subcommittee said Wednesday that he will write legislation reforming the nation’s financial markets without waiting for the Reagan Administration to resolve disputes among warring regulatory agencies.

“For the investors of this country, justice delayed is justice denied,” said Rep. Edward J. Markey (D-Mass.).

At a four-hour hearing of his House Energy and Commerce subcommittee on finance, Markey sharply criticized the creation of an Administration working group to coordinate recommendations on what should be done to prevent a recurrence of the Oct. 19 stock market crash.

The panel, headed by Treasury Undersecretary George D. Gould, has the job of trying to resolve a turf fight among the Federal Reserve Board, Securities and Exchange Commission and the Commodity Futures Trading Commission over regulating the various financial markets. President Reagan signed an order last Friday creating the panel and gave it 60 days to report back to him.

His spokesman, Marlin Fitzwater, warned that the issues “may not be resolved quickly or without considerable reflection.”

Markey, however, complained that the recommendations delivered in January by a presidential task force headed by former New Jersey Sen. Nicholas Brady should have been enough for the Administration to make up its mind.

He complained that waiting two more months would make it increasingly difficult to pass legislation this year, adding: “In my judgment, Congress must act this year. The greatest danger facing our financial system is the safe course of delay.”

Gould responded that his panel, which will include representatives of the SEC, the Federal Reserve and the commodities commission, is not conducting another study.

“We are anxious to create action from this, not simply more discussion,” he said.