June 30, 2010
Contact: Aaron Hunter 202-225-2040
Rep. Susan Davis Votes for Wall Street Reform and Consumer Protections
Bill ends taxpayer bailouts, TARP, and the idea of ‘too big to fail’
Washington – Reckless financial practices, excessive bonuses and the lack of accountability have been the mark of Wall Street in past years. The result was the greatest economic crash since the Great Depression, millions of jobs lost and trillions of retirement dollars wiped out.
Today, Congresswoman Susan Davis (D-San Diego) stood up to credit and financial companies by voting for the Wall Street Reform and Consumer Protection Act (H.R. 4173).
“Risky behavior by the financial industry pushed our economy to the brink of collapse,” said Davis. “The losers were middle class families who experienced lost jobs, lost homes, and vanishing retirement savings. The common sense reforms in this bill will instill greater responsibility in the industry and protect consumers. We need to create an economy that rewards those who work hard and play by the rules.”
Under the bill, a Consumer Financial Protection Bureau is established within the Federal Reserve with the authority to write new rules for banks and non-banks offering consumer financial services or products. The Bureau will be able to examine and enforce regulations for banks and credit unions with assets of more than $10 billion.
The Wall Street Reform and Consumer Protection Act avoids future taxpayer bailouts and the idea of “too big to fail” by setting up a procedure for winding down failed financial firms. If a large financial firm, such as a Bear Sterns or AIG, were to face collapse, the bill provides federal regulators with the authority to break up the firm by establishing a liquidation procedure run by the Federal Deposit Insurance Corporation (FDIC).
Other provisions in H.R. 4173:
Changes mortgage rules to require lenders to verify that a borrower can repay a home loan with income and assets other than the value of the home.
The Troubled Assets Relief Program, also know as TARP, comes to an end prohibiting additional payments from TARP.
Audits the Federal Reserve's emergency lending programs from the financial crisis.
The Wall Street Reform and Consumer Protection Act passed the House on a vote of 237-192