Wall Street Reform and The Consumer Protection Act

For eight years, President Bush and his Republican allies ignored growing risks in the financial markets as Wall Street and big banks exploited loopholes and harmed America’s families and small businesses. Their failure to regulate financial markets and control these risks left Wall Street and the big banks to gamble with our money, which compromised our future, our savings, and the American Dream. We know what happened: the worst financial crisis since the Great Depression. Wall Street reform is the next critical step to create jobs and grow the economy.  As we rebuild our economy, we must put in place common-sense rules to ensure big banks and Wall Street can't jeopardize our recovery and hurt hard-working families and small businesses once again.  Wall Street may be bouncing back, but we know from experience that left to their own devices they’re not going to police themselves.

On December 11th, the House passed the Wall Street Reform and Consumer Protection Act (HR 4173) by a vote of 223-202. This comprehensive financial regulation reform bill will enact common-sense reforms including ending bailouts by helping ensure taxpayers are never again on the hook for Wall Street’s risky behavior and bad bets; protecting families’ retirement funds, college savings, and homes and businesses’ financial futures from unnecessary risk by Wall Street lenders and speculators and high-paid corporate executives; protecting consumers from predatory lending abuses, fine print, and industry gimmicks; and finally bringing transparency and accountability to a financial system that has run amok.

The Administration issued a Statement of Administration Policy in strong support of the bill saying:

The Administration strongly supports House passage of H.R. 4173. The President has called on the Congress to enact far-reaching financial reform legislation to overhaul the nation’s financial system in the wake of the financial collapse last year, setting forth clear objectives and principles that were endorsed by Congressional leaders. Financial reform is critical: to put in place rules that will allow the nation’s markets to promote innovation while discouraging abuse; to create a framework in which markets can function freely and fairly, without the fragility in which normal business cycles bring the risk of financial collapse; and to provide a system that works for businesses and consumers.

Learn more about the legislation:

• Bill Summary

• Bill Highlights

• Full bill text

• Summary of Title I - Financial Stability Improvement Act

• Summary of Title II—Corporate and Financial Institution Compensation Fairness Act

• Summary of Title III—Over-the-Counter Derivatives Markets Act

• Summary of Title IV—Consumer Financial Protection Agency Act

• Summary of Title V—Capital Markets

• Summary of Title VI—Federal Insurance Office

• Myths vs. Facts