Wall Street Reform Protects Consumers and Small Businesses & Prevents Future Taxpayer Bailouts
Washington, D.C. – Today, Representative Heath Shuler (D-Waynesville) and the other members of the conference committee on Wall Street Reform Legislation released and passed final legislative language that will usher in a new era of consumer protection for taxpayers and small businesses once agreed to in the Senate and signed by the President. The legislation passed the House with bipartisan support by a vote of 237 to 192.
The Wall Street Reform and Consumer Protection Act, H.R. 4173, is a direct response to the financial meltdown of 2008 that created the biggest recession since the Great Depression and cost the United States 8 million jobs.
“I was pleased to be able to represent the House Small Business Committee on this conference committee,” Rep. Shuler said. “For far too long, consumers and small businesses were at the mercy of Wall Street’s predatory loans and mortgages. These reforms will rein in Wall Street, end taxpayer-funded bailouts, prevent another financial upheaval, and stabilize the economy to create an atmosphere conducive to growth and job creation.”
The Wall Street Reform and Consumer Protection Act will:
- Put a stop to big bonuses and egregious salaries on Wall Street by giving a “say on pay” and requiring compensation committees to include independent entities.
- Eliminates bailouts and the idea that a company can be “too big to fail” by granting regulators the authority to preemptively shut down “too big to fail” institutions before they could threaten the national economy.
- Creates oversight that gives “no place to hide” for those who could previously make risky choices and threaten our financial markets without accountability, such as bank CEOs, hedge fund managers and corporate subsidiaries.
- Protects retirement funds, college savings, and other long-term investments from avoidable risk by lenders, speculators and CEOs.
- Creates a new independent Consumer Financial Protection Agency that will protect consumers from the fine print “bait and switch” industry ruses that occurred during the frenzy of subprime lending. Whereas previously it was simply unscrupulous to give loans to those who could not afford to pay them back, now it is illegal.
- Protects small businesses and families by mandating that credit cards, bank loans, and mortgages are fair and comprehensible.
- Improves the transparency and oversight of credit rating agencies.
- Shields small businesses like grocers and other retailers from out-of-control credit card transaction fees that banks and credit and debit card issuers charge businesses for each debit or prepaid-card purchase. This measure is expected to save small businesses billions.
“The financial crisis that began in 2008 showed us that if no one is watching the hen house, the wolves of Wall Street will wreak havoc,” said Rep. Shuler. “The common-sense reforms hammered out by our committee will protect hard-working American families and small businesses and lay the foundation for their future financial success. They also ensure that Wall Street execs cannot continue to make poor business decisions, jeopardize the American economy with no penalties, and then receive trillions of taxpayers’ dollars to bail them out. Those days are over. These reforms will help put our economy back on the road to recovery.”
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