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Financial Reform Gives Regulators Too Much Power: Corker

Regulators will have a lot of leeway in implementing the financial reform legislation, which will saddle the banking industry will more uncertainty, Sen. Bob Corker (R-TN) told CNBC Friday.

"Much of this bill punted to regulators, so there’ll be an uncertainty for a period of time that no doubt will affect the banking industry," Corker said.

The bill, which has already passed the House, will be voted on by the Senate next week.

Corker said that the increased "activism" in Washington has also created more uncertainty in the economy.

"The activism that has taken place there creates that unpredictability," Corker said, which he described as "quite a problem."

Corker acknowledged the economy has been slow to move in part because of lack of demand.

"When you talk to bankers about making loans, they are having difficulty finding credit worthy loans to be made," he said. "We still have the pale of commercial real estate."

Corker said the International Monetary Fund on Thursdaycast a spotlight on problems in the U.S. economy, particularly the high debt of individuals and the government. He contented that U.S. policies "really push people towards indebtedness."

In an annual review, the IMF forecast U.S. federal debt as a percentage of gross domestic product would rise to 80.4 percent in 2015 from 64 percent today.

The best way out of debt is economic growth, Corker said.

"And yet we continue with policies that in my opinion create a lot of unpredictably and concern among those people who make investments and create jobs," he said.

Corker did say he was pleased, however, that the Obama administration is beginning to look at free trade.

"Let’s face it, the fact is we need to export our goods to other countries," he said. "These trade agreements benefit us, they don’t hurt us, and I am somewhat heartened by that activity."