Perlmutter Praises Final Passage of Financial Reform

July 15, 2010

Perlmutter Praises Final Passage of Financial Reform
Wild West Era of Lax Regulation Over

Washington, DC – Today, U.S. Rep. Ed Perlmutter (CO-07) praised the final passage in the Senate of the most significant reforms to the financial industry since the New Deal.  The United States Senate gave final passage to the Wall Street Reform and Consumer Protection Act, and the President is expected to sign the bill soon.

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 the Bush Administration encouraged. When Wall Street operates like the Wild West, Main Street suffers. This bill is about whose side you’re on.  I’m on the side of the hard working people of our district and state – protecting consumers from fraud and providing Coloradans with financial security.  We cannot let America’s families and small businesses pay the price for Wall Street’s recklessness.””

Click Here to view Perlmutter’s speech on the Wall Street Reform Bill when it passed the House.

Perlmutter, who lead the debate on final passage of the bill in the House, successfully included a provision to take a necessary closer look at High Frequency Trading which played a role in the May 6, 2010 “Flash Crash” so we can ensure adequate oversight of this kind of trading.  Additionally, Perlmutter sponsored the House version of the restriction on proprietary trading, which was ultimately strengthened in the Senate.  He also included a provision giving the new oversight council authority to make recommendations on accounting principles which will enable regulators to ensure financial policies do not exaggerate risks to our economic stability.

Other key provisions of the bill include:

 

  • Establishment of a new Bureau on Consumer Financial Protection within the Federal Reserve 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.