WASHINGTON, DC – U.S. Rep. Bill Delahunt applauded President Barack Obama’s plan to rebuild the regulatory framework and supervision of the country’s financial system.

“The plan announced by the President today will protect consumers and investors by restoring much of the regulatory oversight of our financial system that has been systematically dismantled in recent years,” said Delahunt.  “The meltdown of our financial system which began on Wall Street has taken a devastating toll on all Americans.  Consumers have lost trillions in investment income and home equity while investors from around the world have lost confidence in our markets.”

The plan is built around five key points:

• The proposal would increase the power of the Federal Reserve, creating stronger and more consistent oversight of the largest financial firms.                                                                                                                                 
• It asks Congress to authorize the government, for the first time, to dismantle large firms that fall into trouble, avoiding a chaotic collapse that could disrupt the economy.
• Federal oversight would be extended to dark corners of the financial markets, imposing new rules on trading in complex derivatives and exotic and complicated securities built from mortgage loans.
• ·he government would create a new agency modeled on the Delahunt- Brad Miller plan introduced in the House to protect consumers of mortgages, credit cards and other financial products.
• Finally, the Obama administration would increase its coordination with other nations to prevent businesses from migrating to less regulated venues.

The newly announced Consumer Financial Protection Agency will protect consumers across the financial sector from unfair, deceptive, and abusive practices.  It closely resembles a plan authored by U.S. Reps. Delahunt and Brad Miller to create a Financial Products Safety Commission which they introduced in the House earlier this year.  Their plan would create a “consumer watchdog” to provide strong and consistent regulation and supervision of consumer financial services and investment markets and, over time, rebuild confidence in our markets.  

Earlier this year, the Congress also endorsed a plan sponsored by Delahunt to create a Financial Markets Commission to investigate the causes behind the near-collapse of our banking system.  Legislation creating the Commission and expanding fraud investigations was recently signed into law by President Obama.  Delahunt is also a co-sponsor of the “Protecting Consumers from Unreasonable Credit Rates Act” which eliminates the excessive rates and fees consumers are charged for payday loans, car title loans, and other types of credit, as well as the “Helping Families Save Their Homes in Bankruptcy Act” to address the mortgage crisis.  

“Now it’s up to us in Congress to take the next step, and expeditiously move this bold plan proposed by President Obama into law,” Delahunt continued.  “The events of the past few years amply demonstrate the need for sweeping regulatory reform and enhanced consumer protection, along the lines of what the President has laid out today.”

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