Washington, D.C. - Today, Rep. Berman voted to help restore common sense to Wall Street with the largest reform of our nation’s financial regulations since the New Deal.  The Wall Street Reform and Consumer Protection Act will end taxpayer-funded bailouts and “too big to fail” financial institutions, protect consumers from predatory lending, safeguard our retirement and college savings from unnecessary risks, and inject transparency and new accountability into a financial system run amok.

For eight years, President Bush and Republican allies looked the other way as Wall Street and big banks exploited loopholes and gambled with taxpayer money – compromising savings for college, a new home, retirement, or a rainy day.  The failure to regulate the risky and irresponsible behavior of the financial industry led to the worst financial crisis since the Great Depression.  This bill will put a stop to Wall Street excesses and hold the big banks accountable.  

The Wall Street Reform and Consumer Protection Act will create a new Consumer Financial Protection Agency to protect families and small businesses by ensuring bank loans, mortgages, and credit cards are fair, affordable, and understandable.  For the first time, the new agency streamlines into one place the role of protecting ordinary Americans’ financial security.  The legislation strengthens government oversight over large banks and financial firms – including new regulation of credit rating agencies and riskier hedge funds, derivatives, and other complex financial deals.

This bill includes tougher enforcement and oversight of existing protections.  It gives the Securities and Exchange Commission new enforcement powers, including requiring hedge funds and private equity funds to register.  It enhances oversight and transparency of the credit rating agencies whose seal of approval gave way to many of the excessively risky practices that led to a financial collapse.  It addresses egregious executive compensation, allowing shareholders to have a “say on pay,” requiring independent directors on compensation committees, and limiting the risky pay practices of bank executives that jeopardized banks’ soundness.

Wall Street reform is the next critical step to create jobs and grow the economy.  As Congress helps to rebuild the economy, it must put in place common-sense rules to ensure big banks and Wall Street can't jeopardize recovery and hurt hard-working families and small businesses.  Wall Street may be bouncing back, but they’re not going to police themselves.