Wall Street Reform |
On June 30th, 2010, Rep. Eshoo voted for and the House of Representatives passed H.R. 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act. Rep. Eshoo describes this landmark legislation as "one of the most critical bills I have ever voted for in Congress." The bill protects the American people so they are never again victimized by Wall Street's reckless behavior which brought our economy to its knees, wreaking havoc across the country with over 8 million jobs lost and a $17 trillion loss in net worth. It makes the most sweeping and comprehensive reforms to our financial system since the Great Depression.
The Wall Street Reform and Consumer Protection Act:
The legislation was signed into law by President Obama on July 21, 2010. The Impact of Lehman Brothers Collapse on San Mateo County When Lehman Brothers collapsed in September 2008, it represented the single largest bankruptcy in the history of the United States. As a result, more than 40 municipalities from around the country lost close to $1.7 billion. San Mateo County lost $155 million. The affects of this loss are still being felt today-teachers are being laid off, schools are not being built or renovated, roads are not being improved, and transportation plans are being scrapped. San Mateo County is required by California State law to hold operating funds, reserves and bond proceeds in an investment pool. Their investment pool held funds on behalf of the county and local cities, school districts, transit agencies and the community college district. The collapse of Lehman Brothers resulted from risky, deceptive practices which exemplify some of the worst excesses of Wall Street and the kind of practices which the Wall Street Reform and Consumer Protection Act of 2009 was designed to address. But, reform alone will not alleviate the harm to San Mateo County and the other municipalities injured by Lehman's Collapse. Rep. Eshoo introduced the Restitution for Local Government Act on April 23, 2010 to assist the affected municipalities in recouping these lost tax dollars. The Restitution for Local Government Act will require the Treasury to use future profits from TARP assets to purchase Lehman securities, bonds, and other financial instruments held by local governments on September 12, 2008, the Friday before Lehman collapsed. Under the legislation, entities which receive funds must report back to the federal government about how the money is used and demonstrate job creation, retention, and economic activity equal to the amount of funds they received. Read more about the Restitution for Local Government Act.
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