Last night Congressman Kurt Schrader voted in favor of HR 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act. The legislation passed the House 237-192 and will now be sent over to the Senate for further consideration.
 
“I originally voted against the first version of HR 4173 because it was too weak and was laden with loopholes,” said Schrader. “This legislation has become steadily stronger, especially with regard to derivatives, and I’m pleased to lend this effort my support.”
 
Risky investments made on Wall Street caused an economic meltdown that cost many Americans their jobs, homes, and retirements. HR 4173 comes as a response to the economic meltdown and establishes a new financial framework that will work to prevent another financial catastrophe.

HR 4173 establishes certainty in the financial community so that lenders will begin to extend credit to small businesses and get our economy going again. The bill goes a long way to re-establish significant fire walls between investment banking and deposits in your community bank. Banks are required to retain a minimum of 5% capital risk in any security they acquire and sell so that they will be more careful with our money and must verify a borrower’s ability to repay a loan. Hedge funds, previously unregulated, must now register with the SEC. Most importantly the bill requires that banks only be allowed to invest 3% of their assets into risky hedge swap ventures and spinoff their riskiest derivative operations so that your deposits are not at risk.

Finally, much needed moderate regulation to restore accountability and stability to our system. The Dodd-Frank Wall Street Reform and Consumer Protection Act is endorsed by several organizations including the AARP, the National Restaurant Association, the National Fair Housing Alliance, and the Consumer Federation of America.