U.S. financial overhaul a topic for 2009: CEO group

WASHINGTON (Reuters) - A trade group representing the largest U.S. companies says it does not expect Congress to start tackling the complex task of overhauling the U.S. financial regulation system this year.

"We do not expect a fix this year, and we do not expect everything to be fixed next year," said John Castellani, president of the Business Roundtable, during a briefing Thursday on its agenda for the rest of the legislative year. "This is going to be a very very difficult course."

He said the Business Roundtable, an association of about 160 chief executives, has been speaking to the campaigns of Republican presidential candidate John McCain and Democratic nominee Barack Obama, stressing the importance of fixing the causes of the current financial crisis without limiting liquidity for investment and economic growth.

U.S. Treasury Secretary Henry Paulson and leading lawmakers have called for an overhaul of U.S. financial regulation after lax mortgage lending standards, an onslaught of risky financial products, and falling home prices created a domino effect that resulted in a widespread credit crisis.

Castellani said the group's members have a mixed economic outlook, with its housing, financial services, retail and auto members suffering. But companies in the fields of business services and heavy machinery production have been doing very well due to benefits from a relatively weak U.S. dollar.

"The bright spot of the economy is what's going on in the international marketplace," Castellani said.

The roundtable's members include chief executives from JPMorgan Chase & Co <JPM.N>, Boeing Co <BA.N>, IBM Corp <IBM.N>, General Electric Co <GE.N>, and General Motors Corp

<GM.N>.

The group is yet to agree on whether a second stimulus package would significantly benefit the U.S. economy, and Castellani said members will discuss the matter at a meeting later this month.

Congress passed a $152 billion stimulus package in February, sending checks directly to millions of Americans beginning in May, in an attempt to spur the economy and help those hurt by the economic slowdown.

Castellani said the domestic economy is consumer-driven, but it is unclear how much of a boost would come from another short-term injection of cash.

He also said U.S. business needs quick legislative action to relieve health care and energy costs.

The roundtable supports legislation that would provide incentives for electronic health record systems, citing statistics that indicate widespread adoption could result in savings of $165 billion annually.

Regarding energy, the Business Roundtable sent a letter on Thursday encouraging Congress to lift the ban on oil exploration on the outer continental shelf.

President George W. Bush has also called on Congress to end its offshore drilling ban, which has been in place since the early 1980s. Bush lifted a similar presidential prohibition in July.

"Energy costs are driving jobs out of the economy," Castellani said.

(Reporting by Karey Wutkowski; Editing by Tim Dobbyn)