Washington, DC – U.S. Representative Judy Biggert (R-IL-13), a member of the Conference Committee charged with merging the House and Senate financial regulatory bills, today delivered the following statement after House conferees approved a final legislative proposal by a vote of 20 to 11 and Senate conferees approved it by a vote of 7 to 5:

            “It’s extremely disappointing that House and Senate leaders refused to accept the responsible changes needed to turn this bill into the kind of reform package that our financial system so clearly needs and that I would want to support.  From the beginning of this process, I have said that effective financial reform must end the bailouts and prevent the next financial meltdown from threatening the jobs, savings and financial security of American families.  But instead of meeting these challenges with sound economic principals, Democrat leaders have pushed ahead with a package that firmly entrenches the “too-big-to-fail” regulatory approach that allows Washington to pick winners and losers, and leaves taxpayers on the hook for more bailouts down the road. 

           “Incredibly, the final package creates an entirely new czar and new bureaucracy, with sweeping and unchecked powers to limit consumer choices and regulate small businesses.  At the same time, it does absolutely nothing to reign-in two of the largest contributors to the current financial mess, Fannie Mae and Freddie Mac.  

           “That’s not the kind of smart, effective reform Americans are seeking.  I and my colleagues offered dozens of amendments to put the bill back on target, preserve consumer choice, end abuses and bailouts, and protect small businesses.  We offered enhanced bankruptcy rules as a responsible alternative to end the bailouts and restore accountability to Wall Street.  With few exceptions, these efforts were dismissed by those across the aisle, while several proposals for reforming Fannie and Freddie were simply deemed ‘out for order’ without a debate or a vote.

           “This is a massively complex undertaking, and there were some areas were I am pleased we were able to reach consensus, especially when it comes to appraisal and mortgage reform, stronger coordination among regulators, and increasing transparency.  Unfortunately, these areas of agreement do not outweigh the major shortcomings of this legislation.  I hope my colleagues will defeat this proposal when it comes before the full House, and force Congressional leaders to consider better, more responsible reforms to get our financial system moving again, creating jobs, and building savings for American families.”

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