BigNews.Biz - Dec 15,2009 - WASHINGTON, DC – Representative Joe Courtney voted for the Wall Street Reform and Consumer Protection Act (H.R. 4173), which passed the U.S. House of Representatives by a 223-202 vote. The Wall Street Reform and Consumer Protection Act implements new measures to protect families' retirement funds, college savings, and personal and small business' financial security from risky Wall Street practices and imposes accountability on the “too big to fail” banks.
Click here to see text of H.R. 4173, the Wall Street Reform and Consumer Protection Act.
Rep. Courtney stated, “I voted against the Wall Street Bailout last November in part because it failed to enact real regulatory reform and did not hold those responsible for our current financial crisis accountable for their actions. This legislation will reform our financial and lending industry to target those entities and practices that pose the greatest risk to our economy.”
“My goal continues to be to make sure that our economy recovers as quickly as possible and with safeguards in place to protect individuals and families, retirees, seniors, students, and small businesses from the unscrupulous behavior that has cost our nation dearly,” Courtney continued.
The Wall Street Reform and Consumer Protection Act restricts the power of the Federal Reserve and offers no authority for future taxpayer funded Wall Street bailouts. This legislation will prevent lenders from underwriting mortgages for consumers who cannot afford the loan. Through strong oversight and regulations, H.R. 4173 will create a more responsible financial lending environment at both ends of the spectrum - the lender and the borrower.
Click here to read a letter in which Rep. Courtney urged Financial Services Committee Chairman Barney Frank to exempt local banks.
H.R. 4173 will do the following:
* Pull back the curtain on the unregulated "over-the-counter" derivatives market that poses a risk to our broader economy, exposing these markets to public and regulatory transparency and new rules.
* All mortgage lenders for the first time will be subject to high national standards, and borrowers will be required to show proof of income and the ability to keep up with mortgage payments.
* Lenders will be forced to have "skin in the game," with requirements that they maintain five percent of risky loans otherwise sold into the secondary market. Lenders will no longer be able to push loans on borrowers who clearly cannot make the payments.
* Bans future federally-funded bailouts. Instead, the legislation will make large financial institutions - not taxpayers - pay into a Systemic Dissolution Fund, which will be used to safely dissolve failing institutions. The AIGs of tomorrow will not be bailed out by taxpayer dollars.
* Recognizes that local banks did not participate in risky mortgages that contributed to the financial collapse. Specifically, H.R. 4173 exempts our community banks with $10 billion or less and credit unions with $1.5 billion or less in assets from direct regulation by the new Consumer Financial Protection Agency, which the bill creates to consolidate consumer protection regulations across the several agencies that oversee
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