June 25, 2010

 Perlmutter Fights for Strong Wall Street Reform Measures

Washington, D.C. – Next week, the House and Senate will take a historic vote on the most significant reforms to the financial industry since the New Deal.  The House is scheduled to debate and vote on the bill next week.  U.S. Rep. Ed Perlmutter (CO-07) issued the following statement in advance of the vote on the bill.

“The banking system is our circulatory system and two years ago we had a heart attack. The compromise bill developed by a bipartisan group from the House and Senate makes critical reforms to our financial system to address the Wild West era of lax financial regulation. When Wall Street operates like the Wild West, Main Street suffers.

“This bill offers strong consumer protections and independent oversight of the nation’s largest financial institutions while preserving our economic system, restoring confidence, and taking reasonable steps to prevent future meltdowns.”

Among other things, the Wall Street Reform legislation:

  • Would create a new Consumer Financial Protection Bureau within the Federal Reserve, with rulemaking and some enforcement power over banks and non-banks that offer consumer financial products or services such as credit cards, mortgages and other loans.
  • Would have authority to examine and enforce regulations for all mortgage-related businesses; banks and credit unions with assets of more than $10 billion in assets; pay day lenders, check cashers and certain other non-bank financial firms.
    Imposes strict limits on financial companies from trading on their own accounts (Volcker Rule).
  • Prohibits banks from bailing out a fund in which they are invested.
  • Gives shareholders of public companies more authority to determine how top corporate executives are paid (Say-on-Pay).
  • Would establish new national minimum underwriting standards for home mortgages.
  • Require lenders to ensure a borrower can repay a home loan by verifying the borrower's income, credit history and job status.