Given your interest in the state of our economy, I wanted to let you know that the House passed H.R. 4173, the Wall Street Reform and Consumer Protection Act today. I strongly opposed this measure. The bill, a compilation of eight different bills intended to reform financial regulations in response to the financial crisis, would create a permanent bailout fund and expand government involvement in private financial markets. I supported an alternative measure that restores market accountability and protects consumers on Main Street from fraud and improper activity in the financial sector, but that measure was defeated on the House floor on a party line vote.

I agree there are appropriate steps Congress should take to reform our financial regulatory structure and prevent another financial crisis like we experienced last fall. The effects on our economy are still resonating today. Unfortunately, the bill proposed by House Democrats and passed today does not fix the problems in the financial system. Companies that pursued risky investments and business practices will have no incentive to stop their behavior. Instead of ending the bailout mentality that allows large financial firms to reap huge profits on the backs of taxpayers, this legislation reinforces it. It will create a permanent bailout authority, which will allow the government to takeover and prop up any firm it deems ‘systemically’ important to the economy. This is a far cry from placing accountability back on Wall Street.

The legislation also creates a ‘credit czar’ to dictate which financial products American consumers can use. I believe Americans should have more choice in their own financial future, not less. Furthermore, the government expansion and invasion into the private market under the Democrats' plan will ultimately make credit even more expensive and difficult to acquire than it already is. This will hurt American families and small businesses, leading to further job losses. Hard-working families who have played by the rules and lived within their means should not be penalized for bad decisions made in Washington and on Wall Street.

As I indicated, I believe there is a better solution. I have cosponsored an alternative reform plan that ends the era of taxpayer funded bailouts, ends the ability of the government to pick winners and losers, protects consumers from predatory or fraudulent activity, and restores market discipline. The American people want accountability and responsibility – not a permanent bailout fund that will continue business as usual and sow the seeds for the next crisis.