Friday, December 11, 2009

Perlmutter Supports Most Significant Reforms to Wall St. Since New Deal

To View Video of Rep. Perlmutter’s Comments Concerning this bill click here.

Washington, DC – Today, U.S. Rep. Ed Perlmutter (CO-07) joined his colleagues passing the most significant reforms to the financial industry since the New Deal. Today, the Wall St. Reform and Consumer Protection Act passed the full House of Representatives.

The Wall Street Reform and Consumer Protection Act will protect taxpayers and consumers by bringing accountability to Wall Street and big banks and end the risky practices resulting in the worst financial crisis since the Great Depression. This comprehensive legislation will prevent future bailouts of large financial institutions.

“The banking system is our circulatory system and last year we had a heart attack,” said Perlmutter. This bill makes critical reforms to our financial system to address the Wild West era of lax regulation that the Bush Administration encouraged. When Wall Street operates like the Wild West, Main Street suffers. The Wall Street Reform and Consumer Protection Act preserves our economic system, restores confidence, and takes reasonable steps to prevent future meltdowns.”

Several Perlmutter amendments were included within the bill including:

Amendment to allow the federal regulators to prohibit some financial holding companies from trading on their own accounts when there is serious financial threat to the stability of our economy.

Amendment to ensure the U.S. gets paid back first if the federal government provides any monetary assistance to financial institutions on the verge of failing.

Perlmutter continued, “The legislation we voted on today ensures there is no place to hide by closing loopholes, improving consolidated supervision and establishing robust regulatory oversight. We provide for the orderly wind-down of failing firms that are systemically significant, ending the notion of “Too Big to Fail.” By dissolving these firms we end them, we kill them and most importantly we say no to taxpayer bailouts.”

Other key provisions of the bill include:

Establishment of a new Consumer Finance Protection Agency to focus solely on writing meaningful consumer protection standards and keeping watch for predatory practices.

Increased transparency and accountability by establishing a regulatory system for over-the-counter derivatives.

Registration of hedge funds and the doubling of SEC funding to hire more experts.

Strengthening investor protection laws.

Creation of a Federal Insurance Office to gather information, mitigate systemic risks and provide insurance expertise to the Federal government.

Inclusion of previously passed “Say on Pay” and Mortgage Reform aimed at curbing the abusive and predatory practices that led to the subprime lending problems.

Perlmutter stated, “These changes are essential to rebuilding Main Street and getting credit flowing to small businesses, creating jobs and rebuilding our economy. The reforms will protect taxpayers and consumers by reining in the abuses and inefficiencies of Wall Street while enabling a balanced environment for the financial markets to grow and stabilize our economy.”

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